Solving normative conflicts in collective action by promoting redistribution
Authors:
- Lata GangadharanLGLata Gangadharan
- Jona KrutajJKJona Krutaj
- Marie VillevalMVMarie Villeval
- G D'AddaGDG D'Adda
- S CarattiniSCS Carattini
- R CubittRCR Cubitt
- E FatasEFE Fatas
- S GaechterSGS Gaechter
- M LambrechtMLM Lambrecht
- N NikiforakisNNN Nikiforakis
- E ReubenERE Reuben
- A RiedlARA Riedl
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Abstract
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 ensuring 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.Keywords
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