Work

(Not) Everyone can be a winner — The role of payoff interdependence for redistribution

Year: 2025

Type: article

Abstract: Frequently, one person’s success comes at the expense of others. We contrast such zero-sum environments in which individuals’ payoffs are interdependent to those where payoffs are independent. In a laboratory experiment, we study whether the resulting inequality is perceived differently and how this affects redistribution. Across treatments, we compare a spectator’s redistribution of two workers’ earnings. If workers do not compete in a zero-sum setting, average redistribution decreases. In a representative survey, we replicate this finding and document that individuals who believe in a zero-sum world support higher levels of redistribution and are more likely to consider themselves a member of the Democratic party. • The study contrasts zero-sum environments with those where payoffs are independent. • A lab experiment examines redistribution decisions in a worker-spectator design. • In non-zero-sum settings, the average redistribution of earnings decreases. • A survey representative for the US confirms the laboratory findings.

Source: Journal of Public Economics

DOI: 10.1016/j.jpubeco.2025.105320

Authors: Louis Strang, Sebastian Schaube

Institutions: University of Cologne, Bundesministerium für Wirtschaft und Energie

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

SDGs: Reduced inequalities, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $4,510