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Gamblers hate inequality: evidence from China

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  • Roland Cheo

Abstract

Two gambles are presented in this article along with two treatments which allow us to test for inequality aversion without having to consider risk aversion. This work complements existing studies by extending it to the gambling environment. In gambling decisions made from a ‘losses from an initial endowment’ approach, we find that regardless of whether out-of-pocket losses are an issue, both Chinese male and female students bet less when they know that losses will be distributed to the winners of gambles with excessive winnings.

Suggested Citation

  • Roland Cheo, 2012. "Gamblers hate inequality: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 19(12), pages 1139-1142, August.
    • Handle: RePEc:taf:apeclt:v:19:y:2012:i:12:p:1139-1142
    DOI: 10.1080/13504851.2011.581200
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    1. Riyanto, Yohanes Eko & Zhang, Jianlin, 2010. "An Egalitarian Regime Breeds Generosity: The Effect of Endowment Allocation Procedures on Social Preferences," MPRA Paper 21727, University Library of Munich, Germany.
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