Social Groups with Selfish Individuals
48 Pages Posted: 14 Oct 2019 Last revised: 8 May 2020
Date Written: May 05, 2020
I test the effect of multiple pivotal players on unfair choices in a setup with a leader and two followers deciding on whether to expropriate the payoff of a group member. Comparing unanimity decisions to individual decisions within the group, I find that leaders are fairer in the unanimity rule compared to individual decision-making. Followers are more unfair than leaders. These findings refute multiple pivotality as a source of unfair group decisions, and are in line with image and harm responsibility concerns. Control treatments suggest that a minority might prefer not to collectively redistribute the wealth away from a victim.
Keywords: groups, fairness, social preferences, unanimity
JEL Classification: D90, D30, D70, C92
Suggested Citation: Suggested Citation