2003/02/01 by Yoram Kroll, Liema Davidovitz · 1 citation
Economics, Econometrics and Finance · Mathematics · Social Sciences · #Ambiguity aversion #Computer science #Econometrics #Economic Theory and Institutions #Economic inequality #Economics #Egalitarianism #Expected utility hypothesis #Experimental Behavioral Economics Studies #Income, Poverty, and Inequality #Inequality #Inequity aversion #Mathematical economics #Mathematics #Microeconomics #Risk aversion (psychology)
paper · doi:10.1111/1468-0335.t01-1-00269
published in Economica 70(277), 19-29 (Wiley)
openalex publication_date 2003/02/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/11
Inequality aversion and risk‐aversion are widely assumed in economic models; however existing economic literature fails to distinguish between the two. This paper presents methodology and a laboratory experiment, which separates inequality aversion from risk aversion. In a set of laboratory experiments, subjects had to choose between two risky alternatives which pay meaningful prizes with the same individual risk but different levels of egalitarianism. Thus, the choice of the more egalitarian alternative implies a higher level of inequality aversion. The experiment was conducted among children, some of whom live on a communal system (kibbutz) and some in the city.