Invites you to a

Experimental economics seminar presented by

  David Butler Griffith University                                                          &                                         Peter Moffatt University of East Anglia

Decomposing risk-attitude from inequality aversion in simple games: an experiment

Co-authors:
Graham Loomes (University of Warwick)

Andrea Isoni (Warwick Business School)

Daniel Navarro Martinez (Barcelona School of Economics)

Tuesday 21 March 2023

12.00pm – 1.00pm

Abstract: We develop a new experimental design to identify the distribution of inequality-aversion (IA) parameters. Using four sets of popular 2×2 games, we use a choice list task to elicit preferences first when only own-payoffs are visible (to estimate risk attitude (RA) over own-payoffs) and then with both player’s payoffs visible (to estimate IA parameters). The distribution of IA parameters assuming risk neutrality, as in the IA model, shows every subject to be averse to disadvantageous inequality. When we include measured RA however, we find every subject favours disadvantageous inequality in these games. Aversion to advantageous inequality is positive whether we assume risk neutrality or not.

For further information contact: Experimental economics seminar series coordinator
Dr Jonathan Levy (jonathan.levy@sydney.edu.au)

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