Stated and Revealed Inequality Aversion in Three Subject Pools

68 Pages Posted: 6 Apr 2015

See all articles by Benjamin Beranek

Benjamin Beranek

University of Nottingham

Robin P. Cubitt

University of Nottingham; University of Nottingham - Centre for Decision Research and Experimental Economics (CeDEx)

Simon Gaechter

University of Nottingham; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Abstract

This paper reports data from three subject pools (n=717 subjects) using techniques based on those of Loewenstein, et al. (1989) and Blanco, et al. (2011) to obtain parameters, respectively, of stated and revealed inequality aversion. We provide a replication opportunity for those papers, with two innovations: (i) a design which allows stated and revealed preferences to be compared at the individual level; (ii) assessment of robustness of findings across subjects from a UK university, a Turkish university and Amazon Mechanical Turk. Our findings on stated aversion to inequality are qualitatively similar to those of Loewenstein, et al. in each of our subject pools, whereas there are notable differences between some of our findings on revealed preference and those of Blanco, et al. We find that revealed advantageous inequality aversion is often stronger than revealed dis-advantageous inequality aversion. In most subject pools, we find some (weak) correlation between corresponding parameters of stated and revealed inequality aversion.

Keywords: inequality aversion, replication, revealed and stated preferences, robustness across subject pools, MTurk

JEL Classification: C90

Suggested Citation

Beranek, Benjamin and Cubitt, Robin P. and Gachter, Simon, Stated and Revealed Inequality Aversion in Three Subject Pools. IZA Discussion Paper No. 8954, Available at SSRN: https://ssrn.com/abstract=2589816

Benjamin Beranek (Contact Author)

University of Nottingham

Robin P. Cubitt

University of Nottingham ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

HOME PAGE: http://www/economics/staff/details/robin_cubitt.htm

University of Nottingham - Centre for Decision Research and Experimental Economics (CeDEx) ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Simon Gachter

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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