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On the redistribution of wealth in a developing country: Experimental evidence on stake and framing effects

Citation

Leibbrandt, A and Maitra, P and Neelim, A, On the redistribution of wealth in a developing country: Experimental evidence on stake and framing effects, Economic Experiments in Developing Countries, 118 pp. 360-371. ISSN 0167-2681 (2015) [Refereed Article]

Copyright Statement

Copyright 2015 Elsevier Science B.V.

DOI: doi:10.1016/j.jebo.2015.02.015

Abstract

We experimentally study the effect of framing and size of large windfall gains on the redistribution of such gains. Randomly selected individuals from villages in Bangladesh were invited to take part in dictator experiments where they received endowments worth up to five months of average household income and were asked to distribute the endowment between themselves and other individuals. We manipulated whether dictators could GIVE to or TAKE from another individual (i.e. whether the endowment was allocated to the dictator or other individual) and whether the endowment was moderate (LOW) or very large (HIGH). We also provided dictators with the option to reconsider their original decision. We find that dictators allocate almost nine times more to other individuals under the TAKE than the GIVE frame when stakes are HIGH, even after they could reconsider their choices. In addition, we find that proportions allocated to other individuals dramatically drop when stakes increase under the GIVE but not the TAKE frame. The results provide novel evidence on the role of framing and stakes for pro-sociality.

Item Details

Item Type:Refereed Article
Keywords:framing, stake, artefactual field experiment, altruism, redistribution, dictator game
Research Division:Economics
Research Group:Applied economics
Research Field:Behavioural economics
Objective Division:Expanding Knowledge
Objective Group:Expanding knowledge
Objective Field:Expanding knowledge in economics
UTAS Author:Neelim, A (Dr Ananta Neelim)
ID Code:146237
Year Published:2015
Web of Science® Times Cited:11
Deposited By:Economics and Finance
Deposited On:2021-08-26
Last Modified:2021-11-24
Downloads:0

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