The Perils of Advocating Transfers

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

Research output: Working paper


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 languageEnglish (US)
Number of pages34
StatePublished - Sep 30 2015


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