2007): A Within-Subject Analysis of Other-Regarding Preferences

We assess the predictive power of a model of other-regarding preferences, inequality aversion, using a within-subjects design. We run four different experiments (ultima-tum game, dictator game, sequential prisoner’s dilemma and public-good game) with the same sample of subjects. From the data we estimate parameters of aversion to disadvantageous and advantageous inequality. We then use these estimates to test several hypotheses across games. Our data show that results from within-subject tests can differ markedly from aggregate-level analysis. Inequality-aversion has predictive power at the aggregate level but performs less well at the individual level. The model seems to be able to capture different behavioral motives in different games but a low correlation of these motives within subjects appears to cause failure at the individual level