Paying for randomization and indecisiveness

Abstract We examine preference for randomization, and link it to conflicting preference-led indecisiveness in social settings. In an ultimatum game experiment where receivers may face preferences between material gains equity, we allow assign non-zero probabilities both acceptance rejection (the randomized choice) addition the standard binary choice of or rejection. further elicit receivers’ willingness pay using instead choice. find that a theoretical model incorporating explains experimental results well: most actively rejection, many were willing randomization. Our suggest allowing people randomize when making choices with improve individual welfare.