Research

Abstract: This paper examines how inequality aversion shapes public support of international redistributive policies. We investigate this question in the context of the global allocation of vaccines during the Covid-19 pandemic, using online survey data from incentivized behavioral games and a discrete choice experiment conducted with German citizens in April 2021 (N=2,402). We distinguish between aversion to advantageous inequality (others worse off, the ’guilt’ parameter) and aversion to disadvantageous inequality (others better off, the ’envy’ parameter). These two forms of inequality aversion shape German citizens’ attitudes towards the cross-country allocation of resources in distinct ways: While higher levels of the guilt parameter significantly increase respondents’ likelihood to prioritize an equitable vaccine allocation, the envy parameter is associated with lower support thereof. These findings suggest that inequality aversion matters for citizens’ support of redistribution beyond the national level and emphasize that distinguishing between both forms of inequality aversion is crucial.

Abstract: How do trust relations shape the degree and success of strategic cooperation in the household? This paper introduces the alignment of trust and trustworthiness as an indicator for the accuracy of spouses’ perceptions about cooperative household behaviors and, consequently, of whether strategic cooperation can be successful. We first theoretically outline these considerations using a simple theoretical framework and then investigate them empirically: We implemented a binary trust game with 351 Indian couples, which revealed substantial variation in trust alignment, distinguishing between no alignment (48.43%), positive alignment (trust met trustworthiness; 32.19%) and negative alignment (mistrust met lack of trustworthiness; 19.37%). We then utilize additional data from a randomized controlled trial to further explore how trust alignment affects spouses’ strategic cooperation in the context of household savings. We find that the provision of a cooperatively or uncooperatively usable saving device significantly increased the wives’ savings only in households where trust game decisions were aligned. Under positive alignment, higher savings were achieved through wives’ increased involvement in household decisions. Under negative alignment, wives were able to effectively use the device to conceal money to realize higher savings. Our findings suggest that household-based interventions should consider spouses’ (mis)perceptions about household cooperation.