The effect of inequality in stakes on sharing behavior: Evidence from an experimental study

Abstract

This study aims to test an aspect of inequality aversion in sharing behavior. We designed a dictator game to examine whether the sharing behavior of a dictator could be affected by the amounts allocated to other dictators. We find that dictators tended to transfer less money to recipients if they knew that other dictators received much more than they did. However, dictators did not share more money if they were given a relatively larger grant than others. This suggests that self-serving fairness norms influence individuals’ sharing behavior.