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

Louis Strang and Sebastian Schaube

Journal of Public Economics, 2025, vol. 243, issue C

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.

Keywords: Redistribution; Fairness; Zero-sum; Social preferences; Lab experiment (search for similar items in EconPapers)
JEL-codes: C91 D31 D63 H23 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:243:y:2025:i:c:s0047272725000180

DOI: 10.1016/j.jpubeco.2025.105320

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