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Money Burning and Stealing in the Laboratory: How Conflicting Ideologies Emerge

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  • Zizzo, D.J.

Abstract

Three experiments on utility interdependence are discussed. Subjects receive money by betting and possibly by arbitrary assignments. They can then pay to reduce and, possibly, redistribute the steal money; in one case, only the decisions of a randomly determined dictator are implemented. The behavior of 80% of burners and redistributors was rank egalitarian. However, arbitrarily advantaged and disadvantaged subjects developed conflicting views of desert: arbitrarily disadvantaged subjects targeted arbitrarily assigned money; arbitrarily advantaged subjects did not care about how money was gained, and, if stealing was allowed, were twice as aggressive against earned money than against money assigned arbitrarily.

Suggested Citation

  • Zizzo, D.J., 2000. "Money Burning and Stealing in the Laboratory: How Conflicting Ideologies Emerge," Economics Series Working Papers 9940, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:9940
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    Cited by:

    1. Daniel J. Zizzo & Andrew J. Oswald, 2001. "Are People Willing to Pay to Reduce Others'Incomes?," Annals of Economics and Statistics, GENES, issue 63-64, pages 39-65.

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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