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||Equity, Justice, Inequality, and Other Normative Criteria and Measurement (jel D63), Criteria for Decision-Making under Risk and Uncertainty (jel D81)|
|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