Equality, equity and incentives: An experiment

B-Tier
Journal: European Economic Review
Year: 2013
Volume: 60
Issue: C
Pages: 32-51

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:eecrev:v:60:y:2013:i:c:p:32-51
Journal Field
General
Author Count
4
Added to Database
2026-01-24