Document Type

Article

Publication Date

8-1-2025

Abstract

We study how three widely discussed cues—source of income (merit vs luck), own performance, and information about others’ work status and performance—shape redistribution. Prior to the dictator game, all 306 dictators and most of the 306 recipients complete the same real-effort matrix task in an online experiment that would yield either $4 or $1 for the dictators. In the Performance treatment the dictator’s payoff is based on their performance; in Luck, it is assigned by a 50-50 draw. We find that: (i) Earned entitlement is prevalent for high-performing dictators: they keep more for themselves; (ii) Earned entitlement is conditional on performance or luck where high-performing dictators keep more when their high payoff is earned and give more when luck dictated the high payoff; (iii) Regarding recipients, deservingness arises from working and not performance. Dictators give around 20% more to anyone who worked, regardless of others’ performance. Taken together, the results show that dictators use own performance to justify keeping a larger share, yet apply a far coarser rule to others, i.e. they reward work and ignore relative performance. The findings refine the notion of earned entitlement and highlight asymmetric fairness criteria in redistributions.

Comments

ESI Working Paper 25-07

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.