Social networks affect redistribution decisions and polarization

Area of Science:

• Social Sciences
• Computational Social Science
• Behavioral Economics

Background:

• Understanding collective decision-making in unequal societies is crucial.
• Social network structures can influence perceptions of inequality and policy support.

Purpose of the Study:

• To investigate how network structure affects collective decisions about redistribution in unequal societies.
• To examine the impact of wealth-based assortativity and visibility on voting, polarization, satisfaction, and fairness perceptions.

Main Methods:

• Development of a computational model to simulate collective decisions.
• Empirical testing of model predictions through an online network experiment.

Main Results:

• Most social networks obscure the extent of inequality.
• Maximum wealth-based assortativity (segregation) minimizes redistribution and polarization.
• High visibility of the rich maximizes redistribution and polarization.
• Segregation maintains poverty but increases satisfaction among the poor.
• Observing the rich decreases satisfaction despite potential economic gains.

Conclusions:

• Network structure profoundly shapes collective outcomes regarding redistribution.
• Strategies to increase redistribution support should focus on enhancing the visibility of excessive wealth.
• Care must be taken to mitigate potential increases in polarization and conflict.