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Solving normative conflicts in collective action by promoting redistribution

Author

Listed:
  • Lata Gangadharan

    (Monash University)

  • Jona Krutaj

    (University of Nottingham)

  • Maria Claire Villeval

    (University of Lyon)

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 & Maria Claire Villeval, 2026. "Solving normative conflicts in collective action by promoting redistribution," Discussion Papers 2026-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2026-03
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