Testing the Role of Procedural Satisfaction: Evidence from Bulgaria

Abstract: We study the effects of procedural satisfaction on responders’ willingness to accept various proposed allocations by investigating the role of proposer’s appointment procedures. We do so in an experimental setting in which we distinguish between responders having their procedural preferences satisfied and not satisfied. One proposer faces four responders who can invest in resistance against the split of a pie. Resistance is modeled as a threshold public good: resistance is successful and nothing has to be paid iff responders’ total contributions exceed a certain threshold. Experimental evidence from Bulgaria suggests that costly resistance depends on whether responders’ individual and group preferences regarding the proposer’s entitlement procedure are satisfied: responders whose procedural preferences are satisfied offer significantly less resistance towards unfavorable allocations.