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Deliberation favors social efficiency by helping people disregard their relative shares: Evidence from US and India

Author

Listed:
  • Valerio Capraro

    (Department of Economics, Middlesex University Business School)

  • Brice Corgnet

    (Economic Science Institute, Argyros School of Business and Economics)

  • Antonio M. Espin

    (Department of Economics, Middlesex University Business School)

  • Roberto Hernan-Gonzalez

    (Business School, University of Nottingham)

Abstract
Groups make decisions on both the production and the distribution of resources. These decisions typically involve a tension between increasing the total level of group resources (i.e. social efficiency) and distributing these resources among group members (i.e. individuals’ relative shares). This is the case because the redistribution process may destroy part of the resources, thus resulting in socially inefficient allocations. Here we apply a dualprocess approach to understand the cognitive underpinnings of this fundamental tension. We conducted a set of experiments to examine the extent to which different allocation decisions respond to intuition or deliberation. In a newly developed approach, we assess intuition and deliberation at both the trait level (using the Cognitive Reflection Test, henceforth CRT) and the state level (through the experimental manipulation of response times). To test for robustness, experiments were conducted in two countries: the US and India. Despite aggregate differences across countries, in both locations and at both levels of analysis, we show that: (i) time pressure and low CRT scores are associated with individuals’ concerns for their relative shares; (ii) time delay and high CRT scores are associated with individuals’ concerns for social efficiency. These findings demonstrate that deliberation favors social efficiency by overriding individuals’ intuitive tendency to focus on relative shares.

Suggested Citation

  • Valerio Capraro & Brice Corgnet & Antonio M. Espin & Roberto Hernan-Gonzalez, 2016. "Deliberation favors social efficiency by helping people disregard their relative shares: Evidence from US and India," Discussion Papers 2016-06, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2016-06
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    References listed on IDEAS

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    1. Antonio M. Espín & Filippos Exadaktylos & Benedikt Herrmann & Pablo Brañas-Garza, 2013. "Short- and Long-run Goals in Ultimatum Bargaining," Working Papers 13-17, Chapman University, Economic Science Institute.
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    5. Pablo Branas-Garza & Antonio M. Espin & Benedikt Herrmann, 2014. "Fair and unfair punishers coexist in the Ultimatum Game," SEET Working Papers 2014-02, BELIS, Istanbul Bilgi University.
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    Cited by:

    1. Amador, Luis & Brañas-Garza, Pablo & Espín, Antonio M. & Garcia, Teresa & Hernández, Ana, 2019. "Consistent and inconsistent choices under uncertainty: The role of cognitive abilities," MPRA Paper 95178, University Library of Munich, Germany.
    2. Antonio Cabrales & Antonio M. Espín & Praveen Kujal & Stephen Rassenti, 2017. "Humans’ (incorrect) distrust of reflective decisions," Working Papers 17-05, Chapman University, Economic Science Institute.
    3. Anna Louisa Merkel & Johannes Lohse, 2019. "Is fairness intuitive? An experiment accounting for subjective utility differences under time pressure," Experimental Economics, Springer;Economic Science Association, vol. 22(1), pages 24-50, March.
    4. Brañas-Garza, Pablo & Espín, Antonio M. & Garcia, Teresa & Kovářík, Jaromír, 2018. "Digit ratio (2D:4D) predicts pro-social behavior in economic games only for unsatisfied individuals," MPRA Paper 86166, University Library of Munich, Germany.
    5. Valerio Capraro & Brice Corgnet & Antonio M. Espin & Roberto Hernán-González, 2017. "Deliberation favours social efficiency by making people disregard their relative shares : evidence from USA and India," Post-Print hal-02311978, HAL.
    6. Hanna Fromell & Daniele Nosenzo & Trudy Owens, 2020. "Altruism, fast and slow? Evidence from a meta-analysis and a new experiment," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 979-1001, December.
    7. Rassenti, Stephen & Espin, Antonio M. & Kujal, Praveen, 2017. "Humans’ (incorrect) distrust of reflective decisions," CEPR Discussion Papers 11949, C.E.P.R. Discussion Papers.
    8. Mark Schneider, 2018. "Modeling Interactions between Risk, Time, and Social Preferences," Working Papers 18-19, Chapman University, Economic Science Institute.

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    Keywords

    efficiency; equality; dual process models; intuition; deliberation;
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