09:30 - 11:00
Room: Floor 3, Room 319, Nature House
Chair/s:
Aleix Garcia-Galocha
Aleix Garcia-Galocha - Higher-Order Rationality and Introspection
Pedro González-Fernández - Belief Bias Identification
Charlotte Cordes - Motivated Procrastination
Tingyan Jia - Empathy, Motivated Reasoning, and Redistribution
Empathy, Motivated Reasoning, and Redistribution
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Presented by: Tingyan Jia
Tingyan Jia
University of Leicester School of Business
Through theoretical and experimental analysis, this study explores the role of empathy in economics and its implications for redistribution. Empathy is defined as accurately simulating others’ feelings, distinct from altruism. Self-interested wealthy individuals may choose not to be empathetic towards the poor to justify limited redistribution. However, diverse personal experiences counteract this self-serving motivated reasoning, promoting greater empathy and redistribution. I formalize the mechanism with a model and conduct a laboratory experiment with exogenous variations in experience and information to validate the model’s predictions. Empirical results affirm the motivated reduction of empathy and underscore the mitigating effect of experience.