Document Type

Article

Publication Date

6-2013

Abstract

Choices involving risk significantly affect the distribution of income and wealth in society. This paper reports the results of the first experiment, to our knowledge, to study fairness views about risktaking, specifically whether such views are based chiefly on ex ante opportunities or on ex post outcomes. We find that, even though many participants focus exclusively on ex ante opportunities, most favor some redistribution ex post. Many participants also make a distinction between ex post inequalities that reflect differences in luck and ex post inequalities that reflect differences in choices. These findings apply to both stakeholders and impartial spectators.

Publisher Statement

© 2007 by the American Economic Association for educational and research purposes.

Recommended Citation

Cappelen, Alexander W, James Konow, Erik Ø. Sørensen and Bertil Tungodden. 2013. "Just Luck: An Experimental Study of Risk-Taking and Fairness." American Economic Review, 103(4): 1398-1413.

20100273_app.pdf (366 kB)
Online Appendix

20100273_data.zip (215 kB)
Data Set

Included in

Economics Commons

Share

COinS