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

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  • Strang, Louis
  • Schaube, Sebastian

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.

Suggested Citation

  • Strang, Louis & Schaube, Sebastian, 2025. "(Not) Everyone can be a winner — The role of payoff interdependence for redistribution," Journal of Public Economics, Elsevier, vol. 243(C).
  • Handle: RePEc:eee:pubeco:v:243:y:2025:i:c:s0047272725000180
    DOI: 10.1016/j.jpubeco.2025.105320
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    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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