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More Satisfaction, Less Equality: Distributive Effects of Transparent Needs in a Laboratory Experiment.

Bernhard Kittel1, Sabine Neuhofer2, Manuel C Schwaninger3

  • 1Department of Economic Sociology, University of Vienna, Vienna, Austria.

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Transparency of individual needs in resource distribution games can increase satisfaction for some but decrease equality for others. This study reveals ambivalent effects, benefiting high-need individuals while potentially harming those with lower needs.

Keywords:
Distributive justiceExperimental researchNeed-based justiceSocial welfareTransparency

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Area of Science:

  • Behavioral Economics
  • Social Psychology
  • Game Theory

Background:

  • Societies face a dilemma where need satisfaction depends on transparent individual needs.
  • Understanding how information about needs affects resource distribution is crucial for social welfare.

Purpose of the Study:

  • To investigate the impact of information transparency regarding individual needs on resource distribution outcomes.
  • To analyze the effects on need satisfaction and equality in a network exchange game.

Main Methods:

  • A laboratory experiment using a three-player network exchange game.
  • Manipulation of need level transparency (transparent vs. opaque).
  • Dyadic negotiation to determine resource distribution.

Main Results:

  • Dyad members achieved their needs regardless of transparency.
  • Transparency increased need satisfaction for the non-dyad member but decreased their allocation share when needs were low.
  • Opaque conditions led to larger shares but lower overall need satisfaction.

Conclusions:

  • Transparent need thresholds have ambivalent distributive effects.
  • Transparency benefits individuals with the highest needs but can disadvantage those with lower needs.
  • The impact on individuals with high network influence is minimal.