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Inequality and redistribution behavior in a give-or-take game
Michael M Bechtel1,2, Roman Liesch2, Kenneth F Scheve3
1Department of Political Science, Washington University in St. Louis, St. Louis, MO 63130-4899; mbechtel@wustl.edu scheve@stanford.edu.
Summary
Economic inequality persists because individuals tolerate it and redistribution behavior is asymmetric. People
Area of Science:
- Behavioral Economics
- Political Science
- Sociology
Background:
- Rising economic inequality is linked to political polarization and extremism globally.
- Understanding the persistence of inequality requires knowledge of its causal effects on individual behavior.
Purpose of the Study:
- To investigate how economic inequality influences individual redistribution behavior.
- To estimate the causal effect of inequality on people's willingness to alter wealth distributions.
Main Methods:
- A randomized "give-or-take" experiment was conducted with representative samples of German and American citizens (n = 4,966).
- Participants experienced conditions of equality, advantageous inequality, or disadvantageous inequality before a redistribution opportunity.
Main Results:
- Individuals imperfectly equalize payoffs, transferring only 12% of endowments on average, indicating tolerance for inequality.
- Redistribution behavior is asymmetric: those taking from the rich do not give to the poor, and vice versa.
Conclusions:
- Behavioral types of redistribution correlate with support for wealth redistribution policies.
- The asymmetry in redistribution behavior may hinder the formation of coalitions for government interventions against rising inequality.
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