02.03.2013 Views

Thinking and Deciding

Thinking and Deciding

Thinking and Deciding

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

432 FAIRNESS AND JUSTICE<br />

but not ex-post equity. After the coin is flipped, the situation is just as inequitable<br />

as Option 1. Option 3 has both ex-ante <strong>and</strong> ex-post equity. People generally prefer<br />

Option 3 to Option 2, <strong>and</strong> Option 2 to Option 1. That is, people are concerned with<br />

equity before the resolution of uncertainty as well as after. 3<br />

In a less fanciful example, Peter Ubel <strong>and</strong> his colleagues (1996b) told subjects<br />

(people waiting for jury duty), “All else equal, kidney transplants are more likely to<br />

succeed if they are transplanted into patients who ‘match’ the kidney donor. The<br />

number of successful transplants one year after transplant is eight out of ten for patients<br />

with a complete match <strong>and</strong> seven out of ten for patients with a partial match.”<br />

The subjects were asked to allocate 100 available kidneys among two groups: 100<br />

with a complete match (hence 80% success rate) <strong>and</strong> 100 with a partial match (70%).<br />

Most subjects allocated 50 kidneys to each group. (In other versions, the groups differed<br />

by race or by socioeconomic status, but the results were essentially the same.)<br />

When asked how to maximize the success rate, fewer than 20% of the subjects gave<br />

the correct answer (all 100 to the 80%-success group), <strong>and</strong> most of these subjects<br />

still allocated the kidneys equally.<br />

In a similar example, Ubel et al. (1996a) found that many people would give a<br />

screening test to everyone in a group of patients covered by the same health maintenance<br />

organization (HMO) if the test would prevent 1,000 cancer cases rather than<br />

give a test to half of the patients (picked at r<strong>and</strong>om) that would prevent 1,200 cancer<br />

cases. Whether the test prevents cancer is the ex-post issue, <strong>and</strong> people were willing<br />

to tolerate less prevention for the sake of more ex-ante equity.<br />

Ubel, Baron, <strong>and</strong> Asch (2001) found that this bias was reduced when the group<br />

was exp<strong>and</strong>ed. If subjects are told that the HMO actually covers two states <strong>and</strong> that<br />

the test cannot be given in one of the states, some subjects switched their preference<br />

to the test that prevented more cancers. It was as though they reasoned that, because<br />

the “group” was now larger, they could not give the test to “everyone” anyway. So<br />

they might as well aim for better consequences, given that “fairness” could not be<br />

achieved. This result illustrates a potential problem with some nonutilitarian concepts<br />

of distributive justice — namely, that the distributions they entail can change<br />

as the group definition is changed. If groups are arbitrary, then the idea of fair distribution<br />

is also arbitrary.<br />

Typically, ex-post equity can be justified by the principle of declining marginal<br />

utility. If we can redistribute the outcomes to make them more equal by taking from<br />

one person <strong>and</strong> giving to another, we generally improve the situation (except for<br />

incentive effects). In these cases, however, that reasoning does not apply, because<br />

only two outcomes are possible. Ex-ante equity has no simple utilitarian justification.<br />

3A similar example (from Petit, 1991) violates the sure-thing principle (Chapter 10). Consider the<br />

following options:<br />

1. Heads Mary wins; tails John wins.<br />

2. Heads John wins; tails John wins.<br />

3. Heads Mary wins; tails Mary wins.<br />

4. Heads John wins; tails Mary wins.<br />

Most people would prefer Option 1 to Option 2, because it is fair ex-ante. And they would prefer Option<br />

4 to Option 3 for the same reason. But the outcome of “tails” is constant in both choices.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!