INEQUALITY AND PROCEDURAL FAIRNESS IN A MONEY-BURNING AND STEALING EXPERIMENT

Daniel John Zizzo

41 citations0/0 files storedResearch on economic inequality

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Experimental Behavioral Economics Studies Income, Poverty, and Inequality Game Theory and Voting Systems

Abstract

This paper presents the results of an experiment where an unequal wealth distribution was created and then subjects could act to change this wealth distribution. Subjects received money by betting and possibly by arbitrary (“undeserved”) gifts; they could then pay to reduce, redistribute and, in half of the sessions, steal money from others. The experimental results are incompatible with some standard models of interdependent preferences. Over 80% of redistributors were rank egalitarian, but how subjects perceived the problem significantly affected their redistribution activity: perceptions of fairness were not simply a matter of relative payoff, and changed according to whether a subject was undeservedly advantaged or otherwise.

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References

1999A Theory of Fairness, Competition, and Cooperation 2000ERC: A Theory of Equity, Reciprocity, and Competition 2002Understanding Social Preferences with Simple Tests 1997Happiness and Economic Performance 1994Preferences, Property Rights, and Anonymity in Bargaining Games 1993Does Studying Economics Inhibit Cooperation?1998Modeling Altruism and Spitefulness in Experiments 1996Altruism in Anonymous Dictator Games

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