Decisions about allocation of scarce resources, such as transplant organs, often entail a trade-off between efficiency (maximize total benefit) and fairness (divide resources equally). Three studies using a hypothetical transplant organ allocation scenario examined allocation to groups vs. individuals. Study 1 demonstrates that allocation to individuals is more efficient than allocation to groups. Study 2 identifies a factor that triggers the use of fairness over efficiency: presenting the beneficiaries as one vs. two arbitrary groups. Specifically, when beneficiaries are presented as one group, policy makers tend to allocate resources efficiently, maximizing total benefit. However, when beneficiaries are divided into two arbitrary groups (by hospital name), policy makers divide resources more equally across the groups, sacrificing efficiency. Study 3 replicates this effect using a redundant grouping attribute (prognosis) and finds evidence for a mediator of the grouping effect – the use of individualizing information to rationalize a more equitable allocation decision.
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