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The impact of group size on giving versus demand for redistribution

Author

Listed:
  • Mollerstrom, Johanna
  • Strulov-Shlain, Avner
  • Taubinsky, Dmitry

Abstract

We report the results of an online experiment studying preferences for giving and preferences for group-wide redistribution in small (4-person) and large (200-person) groups. We find that the desire to engage in voluntary giving decreases significantly with (perceived) group size. However, voting for group-wide redistribution is precisely estimated to not depend on group size. Moreover, people’s perceptions of what constitutes the relevant group are malleable, and affect their desire to give. These results suggest that government programs, such as progressive tax-and-transfer systems, can help satisfy other-regarding preferences for redistribution in a way that creating opportunities for voluntary giving cannot.

Suggested Citation

  • Mollerstrom, Johanna & Strulov-Shlain, Avner & Taubinsky, Dmitry, 2024. "The impact of group size on giving versus demand for redistribution," Journal of Public Economics, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:pubeco:v:237:y:2024:i:c:s0047272724001361
    DOI: 10.1016/j.jpubeco.2024.105200
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    Keywords

    Social preferences; Giving; Redistribution; Public goods;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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