posted on 2009-01-01, 00:00authored byDaniel Houser, Erte Xiao
Inequality aversion is a key motive for punishment, with many prominent
studies suggesting people use punishment to reduce or eliminate inequality. Punishment
in laboratory games, however, is nearly always designed to promote equality (e.g.,
rejections in standard ultimatum games) and the marginal cost of punishment is typically
non-trivially positive. As a consequence, individual preferences over punishment
outcomes remain largely uninformed. We here report data from a laboratory experiment
using dictator games. We find that when people are treated unfairly they systematically
prefer to use punishment to create advantageous inequality. Our results shed new light on
human preferences over punishment outcomes, and have important implications for the
design of mechanisms to deter misconduct.