Informational Requirements for Substantive vs. Procedural Fairness Judgments
To assess the fairness of an allocation from a substantive perspective, one only needs to examine the outcome itself. In contrast, making a procedural judgment requires a deeper understanding of the context, including the rules of the game and the other factors that led to that specific allocation.
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Introduction to Microeconomics Course
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CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
Related
Unfairness of a Coerced 50-50 Split
Subjectivity and Context-Dependency of Fairness Standards
Activity: Evaluating a Society's Procedural Fairness
Informational Requirements for Substantive vs. Procedural Fairness Judgments
Procedural Judgment of Fairness
A city government implements a new policy to allocate scarce public park permits. The permits are distributed via a lottery system where every resident has an equal chance of winning. The final result is that all the permits for a highly desirable park are won by residents of a single, wealthy neighborhood. Which of the following statements represents a critique of this situation based on substantive fairness?
Fairness in a Winner-Take-All Scenario
Analyzing Fairness Critiques
Match each critique of an economic outcome to the type of fairness judgment it represents.
Match each critique of an economic outcome to the type of fairness judgment it represents.
A company awards a large bonus to a single employee selected through a random lottery in which every employee had an equal chance to win. The lowest-paid employee wins the entire bonus. A critique that this outcome is unfair because one person received everything while others received nothing is a judgment based on the procedure used to make the allocation.
Evaluating Fairness in Economic Relief Policies
Fairness in Bonus Allocation
Imagine a scenario where two people are to divide $100. The 'rule of the game' is that Person A can propose any split, and Person B is forced to accept it. Person A proposes a 50/50 split, and they each receive $50. Which statement accurately analyzes the fairness of this situation using both procedural and substantive criteria?
To determine if an economic outcome is fair based on the process that produced it, one only needs to observe the final distribution of resources.
Analyzing Fairness Critiques
Learn After
An economist observes the final distribution of wealth between two individuals: Person A has $100 and Person B has $0. The economist has no information about the actions, choices, or rules that led to this result. Based only on this information, which of the following statements is the most accurate?
Evaluating Fairness Judgments
Informational Needs for Fairness Assessments
Information for Fairness Judgments
An economist can fully evaluate the procedural fairness of a market transaction by looking solely at the final allocation of goods and money between the buyer and seller.
An economist observes a transaction where a rare book is exchanged for $10. To evaluate the procedural fairness of this exchange, which of the following pieces of information would be the most crucial?
An economist is evaluating the fairness of an economic system. Match the type of fairness judgment they could make with the specific set of information available to them.
Fairness Assessment: Outcome vs. Process
Analyzing a Fairness Claim
At the end of a competitive business simulation game, Player A has accumulated 95% of the available resources, while Player B has the remaining 5%. An observer, who only saw these final results, claims the game was unfair. Which of the following statements best evaluates the observer's claim?