Equality, Equity and Incentives: An Experiment

Balafoutas, Loukas; Kocher, Martin G.; Putterman, Louis und Sutter, Matthias (Mai 2013): Equality, Equity and Incentives: An Experiment. In: European Economic Review, Bd. 60: S. 32-51

Abstract

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 2×2 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.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Lehrstühle > Seminar für Experimentelle Wirtschaftsforschung
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: C91, C92, D31, D63, H41
• ISSN: 0014-2921
• Sprache: Englisch