The influence of decision power on distributive fairness

We study the influence of decision power on fairness in the division of gains from productive activity. In an experimental setting, two actors are involved in generating a gain, but only one contributes actively by completing a task. In three treatments, decision power to divide the gain is assigned to (1) the inactive, (2) both the inactive and the active, (3) the active participant. Results show that changes in decision power not only affect allocations in accordance with previous research, but that they also alter fairness perceptions. In particular, full decision power significantly enhances self-serving interpretations of fairness. We discuss implications for organizational design.

Research highlights
► We study the influence of decision power on distributive fairness.
► Across three experimental treatments, we vary the decision power to divide a gain from productive activity between two actors—an active and an inactive.
► Participants trade off self-interest and fairness in their allocation decisions, they take into account meritocratic considerations, and they reveal self-serving biases in their fairness judgments.
► Having full decision power enhances self-serving fairness judgments.