Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/109110 
Year of Publication: 
2014
Series/Report no.: 
IFN Working Paper No. 1014
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
We conduct a laboratory experiment where third-party spectators can redistribute resources between two agents, thereby offsetting the consequences of controllable and uncontrollable luck. Some spectators go to the limits and equalize all or no inequalities, but many follow an interior allocation rule previously unaccounted for by the fairness views in the literature. These interior allocators regard an agent's choice as more important than the cause of her low income and do not always compensate bad uncontrollable luck. Instead, they condition such compensation on the agent's decision regarding controllable luck exposure, even though the two types of luck are independent.
Subjects: 
Fairness
Responsibility
Option luck
Brute luck
Experiment
JEL: 
C91
D63
D81
H23
Document Type: 
Working Paper

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