Process Fairness and Dynamic Consistency
Abstract: When process fairness deviates from outcome fairness, dynamic inconsistencies can arise as in nonexpected utility. Resolute choice (Machina) can restore dynamic consistency under nonexpected utility without using Strotz's precommitment. It can similarly justify dynamically consistent process fairness.
|Keywords||Dynamic consistency, Equity, Nonexpected utility, Procedural fairness, Time consistency|
|JEL||D63, Equity, Justice, Inequality, and Other Normative Criteria and Measurement (jel), D81, Criteria for Decision-Making under Risk and Uncertainty (jel)|
|Persistent URL||dx.doi.org/10.1016/j.econlet.2010.08.031, hdl.handle.net/1765/21462|
Trautmann, S.T, & Wakker, P.P. (2010). Process Fairness and Dynamic Consistency. Economics Letters, 109(3), 187–189. doi:10.1016/j.econlet.2010.08.031