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Inequality-Seeking Punishment

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  • Daniel Houser

    (Interdisciplinary Center for Economic Science, George Mason University)

  • Erte Xiao

    (Department of Social and Decision Science,Carnegie Mellon University)

Abstract

Inequality aversion is a key motive for punishment, with many prominent studies suggesting people use punishment to reduce or eliminate inequality. Punishment in laboratory games, however, is nearly always designed to promote equality (e.g., rejections in standard ultimatum games) and the marginal cost of punishment is typically non-trivially positive. As a consequence, individual preferences over punishment outcomes remain largely uninformed. We here report data from a laboratory experiment using dictator games. We find that when people are treated unfairly they systematically prefer to use punishment to create advantageous inequality. Our results shed new light on human preferences over punishment outcomes, and have important implications for the design of mechanisms to deter misconduct.

Suggested Citation

  • Daniel Houser & Erte Xiao, 2009. "Inequality-Seeking Punishment," Working Papers 1009, George Mason University, Interdisciplinary Center for Economic Science.
    • Handle: RePEc:gms:wpaper:1009
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    References listed on IDEAS

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    Cited by:

    1. Christian Thöni, 2014. "Inequality aversion and antisocial punishment," Theory and Decision, Springer, vol. 76(4), pages 529-545, April.
    2. Diaz, Lina & Houser, Daniel & Ifcher, John & Zarghamee, Homa, 2023. "Estimating social preferences using stated satisfaction: Novel support for inequity aversion," European Economic Review, Elsevier, vol. 155(C).
    3. Tan, Fangfang & Xiao, Erte, 2018. "Third-party punishment: Retribution or deterrence?," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 34-46.
    4. Peter Bußwolder & Swetlana Dregert & Peter Letmathe, 2019. "Consequences of Unfair Job Promotions in Organizations," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 71(1), pages 3-26, February.
    5. Vicente Calabuig & Natalia Jimenez & Gonzalo Olcina & Ismael Rodriguez-Lara, 2019. "United we stand: On the benefits of coordinated punishment," Working Papers 19.01, Universidad Pablo de Olavide, Department of Economics.
    6. Erik O Kimbrough & J Philipp Reiss, 2012. "Measuring the Distribution of Spitefulness," PLOS ONE, Public Library of Science, vol. 7(8), pages 1-8, August.
    7. Hoeft, Leonard & Mill, Wladislaw, 2017. "Selfish punishers," Economics Letters, Elsevier, vol. 157(C), pages 41-44.
    8. Kriss, Peter H. & Weber, Roberto A. & Xiao, Erte, 2016. "Turning a blind eye, but not the other cheek: On the robustness of costly punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 159-177.
    9. Kerstin Mitterbacher & Stefan Palan & Jürgen Fleiß, 2021. "Labor market choices of migrants and redistributive policies," Working Paper Series, Social and Economic Sciences 2021-02, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    10. Erik O Kimbrough & J Philipp Reiss, 2012. "Measuring the Distribution of Spitefulness," PLOS ONE, Public Library of Science, vol. 7(8), pages 1-8, August.
    11. Fehr, Dietmar, 2018. "Is increasing inequality harmful? Experimental evidence," Games and Economic Behavior, Elsevier, vol. 107(C), pages 123-134.
    12. Yuzhen Li & Jun Luo & He Niu & Hang Ye, 2023. "When punishers might be loved: fourth-party choices and third-party punishment in a delegation game," Theory and Decision, Springer, vol. 94(3), pages 423-465, April.
    13. Lingfang (Ivy) Li & Erte Xiao, 2014. "Money Talks: Rebate Mechanisms in Reputation System Design," Management Science, INFORMS, vol. 60(8), pages 2054-2072, August.
    14. Sebastian Prediger, 2011. "How does income inequality affect cooperation and punishment in public good settings?," MAGKS Papers on Economics 201138, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Jesse Marczyk, 2017. "Human punishment is not primarily motivated by inequality," PLOS ONE, Public Library of Science, vol. 12(2), pages 1-11, February.
    16. Leibbrandt, Andreas & López-Pérez, Raúl & Spiegelman, Eli, 2023. "Reciprocal, but inequality averse as well? Mixed motives for punishment and reward," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 91-116.

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