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Solving normative conflicts in collective action by promoting redistribution

Author

Listed:
  • Lata Gangadharan

    (Department of Economics, Monash University, Clayton, VIC 3800 Australia)

  • Jona Krutaj

    (Centre for Decision Research and Experimental Economics, University of Nottingham, UK)

  • Marie Claire Villeval

    (CNRS, Université Lumière Lyon 2, Université Jean-Monnet Saint-Etienne, emlyon business school, GATE, 69007 Lyon, France; IZA, Bonn, Germany)

Abstract

Heterogeneous returns from contributions to a public good create a normative conflict between equality and efficiency. In a laboratory experiment, we proposed an indicative menu of contribution principles including one featuring a decentralized redistribution mechanism ensuring earnings equality in exchange for fully efficient contributions. Although a majority of individuals, when in the position of an impartial observer, considered this principle to be the most appropriate and expected others to agree, they failed to act on it. Designating a leader who endorsed this principle and made non-binding recommendations enabled a majority of groups to adopt it successfully. This resulted in full contributions and earnings equalization through redistribution from advantaged to disadvantaged members, effectively resolving the conflict.

Suggested Citation

  • Lata Gangadharan & Jona Krutaj & Marie Claire Villeval, 2025. "Solving normative conflicts in collective action by promoting redistribution," Working Papers 2528, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:2528
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    Keywords

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    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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