The Perils of Advocating Transfers

Wolfgang Höchtl; Rudolf Kerschbamer; Philipp Kircher; Sandra Ludwig; Alvaro Sandroni

The Perils of Advocating Transfers

Wolfgang Höchtl, Rudolf Kerschbamer, Philipp Kircher, Sandra Ludwig, Alvaro Sandroni

Managerial Economics, Decision Sciences and Operations

Research output: Working paper

Abstract

This paper reports the results of an experimental study investigating unintended consequences of advocacy for wealth redistribution. Advocacy for transfers may polarize society and may, paradoxically, lead to less transfers. This reaction has a subtle logical structure that cannot be captured by any standard economic model. In fact, our results challenge economic principles that are crucial in many domains such as inferences of people’s preferences based on their votes in democratic elections.

Original language	English (US)
Number of pages	34
State	Published - Sep 30 2015

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Cite this

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The Perils of Advocating Transfers

Abstract

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