16:00 - 17:30
Location: South Room 221 - Floor 2
Chair/s:
Jona Krutaj
Vincenzo Prete - The Anatomy of Preferences for Equal Opportunity
Andrea Pogliano - Facing Unequal Opportunities: Does Experience Shape Redistributive Preferences?
Jona Krutaj - Solving normative conflicts in collective action by promoting redistribution
Submission 143
Solving Normative Conflicts in Collective Action by Promoting Redistribution
panel.3-South Room 221 - Floor 2-02
Presented by: Jona Krutaj
Jona Krutaj 1, Marie Claire Villeval 2, 3, Lata Gangadharan 4
1 Centre for Decision Research and Experimental Economics, University of Nottingham, UK
2 CNRS, Université Lumière Lyon 2, Université Jean-Monnet Saint-Etienne, emlyon business school, GATE, 69007 Lyon, France
3 IZA, Bonn, Germany
4 Department of Economics, Monash University, Clayton, VIC 3800, Australia
Heterogeneous returns from contributions to a public good create a normative conflict between equality and efficiency. In a laboratory experiment, we proposed an indicative menu of contribution principles, including one featuring a decentralized redistribution mechanism that ensures earnings equality in exchange for fully efficient contributions. Although a majority of individuals, when in the position of an impartial observer, considered this principle to be the most appropriate and expected others to agree, they failed to act on it. Designating a leader who endorsed this principle and made non-binding recommendations enabled a majority of groups to adopt it successfully. This resulted in full contributions and earnings equalization through redistribution from advantaged to disadvantaged members, effectively resolving the conflict.