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Solidarity, Responsibility and In-Group Bias

Author

Listed:
  • Bolle, Friedel
  • Costard, Jano

Abstract

In the Solidarity game lucky winners of a lottery can transfer part of their income to unlucky losers. Will losers get smaller transfers if they can be assumed to be responsible for their zero income because they have chosen riskier lotteries? Or will risk-lovers and risk-averters favor those who made the same risk-choice, leading to larger transfers within rather than between the risk-groups? While there is support for both motives in the literature, in an experiment we find that the effect of holding people responsible for their actions is overcome by behavior guided by in-group favoritism based on different levels of risk-taking. This behavior is successfully described by a variant of the social utility function suggested by Cappelen et al. (2013).

Suggested Citation

  • Bolle, Friedel & Costard, Jano, 2015. "Solidarity, Responsibility and In-Group Bias," Review of Behavioral Economics, now publishers, vol. 2(3), pages 307-330, October.
    • Handle: RePEc:now:jnlrbe:105.00000036
    DOI: 10.1561/105.00000036
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    Citations

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    Cited by:

    1. Renate Strobl & Conny Wunsch, 2021. "Risky choices and solidarity: disentangling different behavioural channels," Experimental Economics, Springer;Economic Science Association, vol. 24(4), pages 1185-1214, December.
    2. Lenel, Friederike & Steiner, Susan, 2020. "Formal insurance and solidarity. Experimental evidence from Cambodia," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 212-234.
    3. Kittel, Bernhard & Kanitsar, Georg & Traub, Stefan, 2017. "Knowledge, power, and self-interest," Journal of Public Economics, Elsevier, vol. 150(C), pages 39-52.

    More about this item

    Keywords

    Risky behavior; Solidarity; Responsibility; In-group favoritism;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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