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Allocator-recipient asymmetries in resource allocation preferences: A focus on bequests.

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Parents and children have differing views on fair inheritance distribution, with lower-need children desiring more equitable bequests than parents or higher-need children allocate. This study explores resource allocation preferences in families.

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Area of Science:

  • Behavioral Economics
  • Social Psychology
  • Family Studies

Background:

  • Resource allocation is common in financial situations, with allocators distributing assets among recipients of varying needs.
  • Understanding preferences in interpersonal contexts, particularly family bequests, is crucial for equitable distribution.

Purpose of the Study:

  • To examine allocator-recipient asymmetries in preferred resource allocations.
  • To investigate how equality is weighed differently by allocators, higher-need recipients, and lower-need recipients.
  • To explore the impact of interpersonal relationships on allocation decisions.

Main Methods:

  • Experimental design involving participants role-playing as parents, higher-need children, or lower-need children.
  • Participants indicated preferred bequest allocations between siblings with differing financial needs.
  • A perspective-taking intervention was used to assess its effect on allocation asymmetries.

Main Results:

  • Parents allocated, and higher-need children preferred to receive, smaller proportions of bequests compared to what lower-need children desired for their siblings.
  • These asymmetries were linked to concerns about relationship impacts in interpersonal contexts.
  • Asymmetries diminished in non-interpersonal contexts and were reduced by perspective-taking.

Conclusions:

  • Significant differences exist in how parents and children perceive fair inheritance distribution, influenced by relationship dynamics.
  • Perspective-taking can mitigate allocation biases, leading to more equitable outcomes and improved financial well-being for higher-need recipients.
  • Findings contribute to understanding inequality aversion and social preferences in family financial decision-making.