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Rich meets poor : an international fairness experiment

Cappelen, Alexander W.; Moene, Karl Ove; Sørensen, Erik Ø.; Tungodden, Bertil
Working paper
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URI
http://hdl.handle.net/11250/163156
Date
2008-10
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  • Discussion papers (SAM) [578]
Abstract
Why do people in rich countries not transfer more of their income to people in

the world's poorest countries? To study this question and the relative importance

of needs, entitlements, and nationality in people's social preferences, we conducted a

real effort fairness experiment where people in two of the world's richest countries,

Norway and Germany, interacted directly with people in Uganda and Tanzania, two

of the world's poorest countries. In this experiment, the participants were given the

opportunity to transfer money to poor persons with whom they were matched. The

study provides four main Findings. First, entitlement considerations are crucial in

explaining the distributive behavior of rich people in the experiment; second, needs

considerations matter a lot for some participants; third, the participants acted as moral

cosmopolitans; and finally, the participants' choices are consistent with a self-serving

bias in their social preferences.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2008:22

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