Investigating the origins of redistributive behaviour in non-ergodic contexts

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Abstract
This study explores the behaviour of individuals regarding redistribution in a non-ergodic environment. By incorporating insights from geometric Brownian motions, we set up a stated preference experiment to shed light on decision-making processes in dynamics where time-averages diverge from ensemble averages. By focussing on time-averages, we propose a novel perspective on redistribution, challenging traditional expected utility theory. To strengthen our findings, we conducted two independent iterations of the experiment, each with 30 multiplicative gambles designed to juxtapose expected gains against the optimization of time-average growth in the context of redistribution. With these bets, we examine the tendency of human decision-makers ( n = 200 per experiment) to redistribute potential gains and losses, motivated primarily by self-interested growth and risk management rather than altruistic motives. Our findings support a potential inclination towards sharing, as evidenced by a willingness to adopt strategies that do not align with expected gains. The observed behaviour supports the hypothesis that an element of human decision-making prefers time-average optimization over expected outcomes. This insight enriches our understanding of decision-making and raises questions about the applicability of conventional rationality models in dynamic environments.

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