Justice in the Shadow of Self-Interest. An Experiment on Redistributive Behavior

Abstract

By means of laboratory experiment I examine the relation between fairness judgments made `behind the veil of ignorance' and actual behavior in a model situation of income inequality. As the evidence shows, when material self-interest is at stake vast majority of subjects tends to abandon the fairness norm. Rather small regard for efficiency is present in the data. Furthermore, as low income players go through a sequence of games against high earners and experience changes in income disparity, the history effect proves to override structural characteristics of the redistribution game.