Context dependence of social preferences: Joint inequity preferences and the missing copula
The context-invariance question
The target asks whether one latent preference distribution explains behavior across a declared family of contexts, with beliefs and response noise separately specified. In the two-person inequity-aversion submodel, \[
U(\pi_1,\pi_2)=\pi_1-a(\pi_2-\pi_1)_+
-b(\pi_1-\pi_2)_+,
\qquad a\ge b\ge0,\quad b<1. \tag{1}
\] This is the benchmark introduced by Fehr and Schmidt [fs]; it is not a definition of all altruism or reciprocity. We give a diagnostic identification result in nonstrategic allocation tasks, then show exactly why separate measurements of the two marginal distributions can fail in a new task. All allocations below are deterministic, consequential, anonymous, and use the same money scale. There is no reputation motive, learning, carryover, or context-specific utility term in this submodel.
Two threshold tasks
For $r>0$, offer the choice between $(0,0)$ and $(1,1+1/r)$. Call selection of the second option $A_r=1$. For $0\le s<1$, offer $(1,1)$ versus $(1/(1-s),0)$, and call selection of the second option $B_s=1$. Assume deterministic utility maximization and resolve ties in favor of the named second option.
Lemma: The recorded choices satisfy \[
A_r=\mathbf1\{a\le r\},\qquad
B_s=\mathbf1\{b\le s\}. \tag{2}
\]
Proof: In the first task the second option has utility $1-a/r$, whereas the first has utility zero. In the second task the unequal option has utility $(1-b)/(1-s)$, whereas the equal option has utility one. The two weak preference inequalities are exactly (2). The declared tie rule includes the threshold itself. ∎
Theorem: If both tasks are administered to the same independently sampled people without altering their preferences, then for every tested pair $(r,s)$, \[
\Pr(A_r=1,B_s=1)=F_{a,b}(r,s). \tag{3}
\] Knowing these probabilities on dense threshold sets in $(0,\infty)\times[0,1)$ identifies the entire distribution of $(a,b)$. With only a finite rectangular threshold grid, the joint masses of its half-open cells are identified by successive differences; any within-cell distribution supported on $a\ge b\ge0$, $b<1$, is observationally equivalent for the full tested threshold battery.
Proof: Equation (3) follows directly by multiplying the two indicators in (2). For an arbitrary finite threshold pair, approximate both coordinates from above by tested values. Continuity of probability under decreasing events recovers its CDF value. The same argument as $r\downarrow0$ recovers possible mass at $a=0$, and increasing limits toward $b=1$ or $a=\infty$ recover the endpoint totals. A joint CDF determines its probability measure, proving identification. On a finite grid, inclusion and exclusion of adjacent lower rectangles yields each cell mass. Every threshold indicator is constant on each such cell, including its prespecified endpoint convention, so changing the distribution within a cell cannot change any joint law of the tested indicators. Conversely, those joint laws give exactly the cell masses. Cells incompatible with the parameter inequalities must have zero mass. ∎
This theorem uses a joint within-person battery. Randomly assigning different people to the two task families identifies their marginal distributions, but generally not the joint distribution needed for new contexts. An actual experiment has finite thresholds and finite data; the dense-battery statement is a population identification limit, not an assertion that an infinite experiment is feasible.
A concrete failure of marginal transport
Example: Consider two context-invariant populations. Population $P$ assigns probability $1/2$ to each of $(a,b)=(1,0),(2,1/2)$. Population $Q$ assigns probability $1/2$ to each of $(1,1/2),(2,0)$. Every type satisfies the restrictions in (1). Both populations have the same marginal law of $a$ and the same marginal law of $b$, so all separately sampled threshold tasks have identical choice probabilities.
Now offer $(13/5,18/5)$ versus $(1,0)$, choosing the first at ties. Their utility difference is $8/5-a+b$, so the first is chosen exactly when $a-b\le8/5$. Under $P$, the two differences $a-b$ are $1$ and $3/2$, so everyone chooses it. Under $Q$, they are $1/2$ and $2$, so only half do. There are no utility ties. The new-context prediction therefore differs although both original marginal batteries fit exactly.
This is a copula ambiguity within a stable-preference model. It cannot be interpreted as evidence that preferences changed with context. Likewise, a noisy response rule cannot be ignored: with logit mistakes, one report is not the threshold indicator in (2), and identifying the joint distribution requires the declared noise model or additional repeats.
An exact compatibility test for a general finite battery
Let $\Theta$ be a compact parameter set, and let $k:\Theta\to\mathbb R^m$ be a continuous vector of the battery's fully specified event probabilities. These may include known response noise and known context-dependent beliefs. Let $p$ be their observed population vector. Every context shares a single probability law $F$.
Proposition: A common distribution explains $p$ if and only if \[
p\in\operatorname{conv}\{k(\theta):\theta\in\Theta\}. \tag{4}
\] Whenever it exists, one explaining distribution has at most $m+1$ support points. If (4) fails, there is a vector $c$ with $c^{\mathsf T}p>\sup_{\theta\in\Theta}c^{\mathsf T}k(\theta)$, which is a population falsification certificate.
Proof: Every finite convex combination of the kernel vectors is generated by a finite-support distribution. Any convex combination with more than $m+1$ points has an affine dependence: coefficients, not all zero, sum to zero and give a zero weighted vector. Moving the mixing weights along this direction until one first reaches zero preserves the combination and reduces its support. Iteration leaves at most $m+1$ points. Since $k(\Theta)$ is compact, its convex hull is compact too: it is the continuous image of the compact product of $m+1$ copies of $\Theta$ and their weight simplex. General probability integrals are limits of finite convex combinations and hence belong to this compact hull. This proves equivalence and the support assertion. Strict separation of a point from a closed convex set gives the final certificate. ∎
Remaining gap
The threshold theorem identifies inequity parameters under strong but transparent allocation-task assumptions; the compatibility test handles any supplied continuous response kernel. Neither establishes stable reciprocity beliefs, distinguishes all social-preference theories, or separates preference variation from misspecified noise. A rejected common kernel can reflect any of these failures. New-context prediction should therefore use the joint identified set and a fixed evaluation loss, while claims about punishment or organizational welfare require a separate welfare criterion.
Completion Estimate
57%
This is a post hoc, heuristic estimate for the full catalogue target. The attempt identifies joint inequity-aversion parameters through within-person threshold tasks and gives finite-battery compatibility and falsification certificates, with a concrete failure of marginal transport. Full context-invariant social-preference assessment still requires credible beliefs and noise models, discrimination of reciprocity and altruism, and held-out prediction against prespecified context-dependent alternatives.
References