Equality, Equity and Incentives: An Experiment
نویسندگان
چکیده
We study a fundamental conflict in economic decision-making, the trade-off between equality, equity and incentives, in a new experimental game that nests a voluntary contributions mechanism in a broader spectrum of incentive schemes. In a 2x2 design, we let subjects either vote on or exogenously encounter incentive settings while assigned unequal endowments are either task-determined or random. We find that earned endowments lead to less support for redistribution and less cooperation. Subjects’ voting is influenced by egalitarian and equity concerns, in addition to self-interest. Cooperation rates respond rather continuously to incentives. JEL-Codes: C91, C92, D31, D63, H41
منابع مشابه
Equality , Equity or Incentives . An Experiment #
This paper studies the tensions between egalitiarian sentiments, equity concerns, self-interest, and the need for incentives in a society. We propose an experimental game in which subjects can assign their endowment to private or (more efficient) group production activities, with the proceeds from group activity divided either equally, in proportion to contribution, or by combination of the two...
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