Submission 49
Perceptions of Inequality: When the Grass Is Less Green on the Other Side
panel.4-225 - Floor 1-02
Presented by: Claire Mollier
This study explores how individuals perceive and respond to wealth inequalities based on intergroup comparisons. Specifically, we examine whether individuals tend to minimize the inequalities they experience when they observe more pronounced disparities in another group. To investigate this, a laboratory experiment is conducted where participants are matched into groups of two players. Subjects receive different allocations within their group and different types of information regarding the other group: no information, the wealthiest’s allocation, the poorest’s allocation, both allocations, and the actions to not reduce inequalities within the group. Data shows that disclosing both the other group’s members allocations, and hence their (higher) level of inequality, negatively impacts the willingness to move towards a more equal situation. Revealing the allocation of the wealthiest or the other group’s decision not to redistribute enhance the perceived fairness of the allocation received.