No evidence of inequality aversion in the investment game.
We report experimental evidence on second-movers' behavior in the investment game (also known as the trust game) when there exists endowment heterogeneity. Using a within-subject analysis, we investigate whether or not second-movers exhibit some taste for inequality aversion by returning a larg...
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2018-01-01
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| Series: | PLoS ONE |
| Online Access: | http://europepmc.org/articles/PMC6198942?pdf=render |
| _version_ | 1818431849849946112 |
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| author | Ismael Rodriguez-Lara |
| author_facet | Ismael Rodriguez-Lara |
| author_sort | Ismael Rodriguez-Lara |
| collection | DOAJ |
| description | We report experimental evidence on second-movers' behavior in the investment game (also known as the trust game) when there exists endowment heterogeneity. Using a within-subject analysis, we investigate whether or not second-movers exhibit some taste for inequality aversion by returning a larger (smaller) share of the available funds to first-movers who are initially endowed with a lesser (larger) endowment, respectively. Our data suggest that second-movers do not take into consideration the level of endowments when making their decisions as their behavior is consistent across distribution of endowments; i.e., they return the same proportion of the available funds regardless of the endowments. We indeed find that some second-movers have a tendency to return what they have received from first-movers. In our data, there is also a substantial proportion of second-movers who are selfish and return nothing. (JEL Codes: C72, C91, D3, D63). |
| first_indexed | 2024-12-14T15:55:51Z |
| format | Article |
| id | doaj.art-22620130de9f4768b29e5dc8a0d1f700 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-12-14T15:55:51Z |
| publishDate | 2018-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-22620130de9f4768b29e5dc8a0d1f7002022-12-21T22:55:17ZengPublic Library of Science (PLoS)PLoS ONE1932-62032018-01-011310e020439210.1371/journal.pone.0204392No evidence of inequality aversion in the investment game.Ismael Rodriguez-LaraWe report experimental evidence on second-movers' behavior in the investment game (also known as the trust game) when there exists endowment heterogeneity. Using a within-subject analysis, we investigate whether or not second-movers exhibit some taste for inequality aversion by returning a larger (smaller) share of the available funds to first-movers who are initially endowed with a lesser (larger) endowment, respectively. Our data suggest that second-movers do not take into consideration the level of endowments when making their decisions as their behavior is consistent across distribution of endowments; i.e., they return the same proportion of the available funds regardless of the endowments. We indeed find that some second-movers have a tendency to return what they have received from first-movers. In our data, there is also a substantial proportion of second-movers who are selfish and return nothing. (JEL Codes: C72, C91, D3, D63).http://europepmc.org/articles/PMC6198942?pdf=render |
| spellingShingle | Ismael Rodriguez-Lara No evidence of inequality aversion in the investment game. PLoS ONE |
| title | No evidence of inequality aversion in the investment game. |
| title_full | No evidence of inequality aversion in the investment game. |
| title_fullStr | No evidence of inequality aversion in the investment game. |
| title_full_unstemmed | No evidence of inequality aversion in the investment game. |
| title_short | No evidence of inequality aversion in the investment game. |
| title_sort | no evidence of inequality aversion in the investment game |
| url | http://europepmc.org/articles/PMC6198942?pdf=render |
| work_keys_str_mv | AT ismaelrodriguezlara noevidenceofinequalityaversionintheinvestmentgame |