Process Fairness and Dynamic Consistency
Economics Letters , Volume 109 - Issue 3 p. 187- 189
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.
|Dynamic consistency, Equity, Nonexpected utility, Procedural fairness, Time consistency|
|Equity, Justice, Inequality, and Other Normative Criteria and Measurement (jel D63), Criteria for Decision-Making under Risk and Uncertainty (jel D81)|
|Organisation||Erasmus Research Institute of Management|
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