Entitlements and fairness: an experimental study of distributive preferences

Under three different rules for allocation of initial income we elicit expe rimental subjects' preferences for income redistribution using an incentive compatible elicitation mechanism. The three income allocation rules are de signed to capture preferences for distributive justice among subjects. The concern is motivated by claims in some of the experimental economics litera ture that non-self-interested motives often underlie individual behavior. W e cannot reject self-interest in favor of any redistribution motives based on our observations. Almost all individuals chose the income distribution w hich maximized their own income - high income individuals chose no redistri bution and low income individuals chose perfect equality in income distribu tion. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classificatio n: D3; D63.