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Are Teams Less Inequality Averse than Individuals?

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  • He, Haoran

    () (Beijing Normal University)

  • Villeval, Marie Claire

    () (CNRS, GATE)

Abstract

We compare inequality aversion in individuals and teams by means of both within- and between-subject experimental designs, and we investigate how teams aggregate individual preferences. We find that team decisions reveal less inequality aversion than individual initial proposals in team decision-making. However, teams are no more selfish than individuals who decide in isolation. Individuals express strategically more inequality aversion in their initial proposals in team decision-making because they anticipate the selfishness of other members. Members with median social preferences drive team decisions. Finally, we show that social image has little influence because guilt and envy are almost similar in anonymous and non-anonymous interactions.

Suggested Citation

  • He, Haoran & Villeval, Marie Claire, 2014. "Are Teams Less Inequality Averse than Individuals?," IZA Discussion Papers 8217, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8217
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    More about this item

    Keywords

    team; inequity aversion; preference aggregation; social image; experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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