Physics – Physics and Society
Scientific paper
2006-08-10
Physics
Physics and Society
11 pages, 1 figure. Presented at 2nd Polish Symposium on Econo- and Sociophysics, Cracow, 21-22 April 2006. To be published in
Scientific paper
By means of laboratory experiment I examine the relation between fairness judgments made `behind the veil of ignorance' and actual behavior in a model situation of income inequality. As the evidence shows, when material self-interest is at stake vast majority of subjects tends to abandon the fairness norm. Rather small regard for efficiency is present in the data. Furthermore, as low income players go through a sequence of games against high earners and experience changes in income disparity, the history effect proves to override structural characteristics of the redistribution game.
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