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A tale of two cities

An experiment on inequality and preferences

Bibliographic Data

ID21405282
AuthorsMaria Bigoni (0000-0001-5988-6115, University of Bologna, corresponding author), Stefania Bortolotti (0000-0002-8326-5447, University of Bologna), Veronica Rattini (0000-0002-8900-2023, University of Milan)
Year2022
Volume92
Issue1
Pages189-222
Publication date2022-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueTheory and Decision (JOURNAL)
Journal identifiersISSN: 0040-5833 • E-ISSN: 1573-7187
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11238-021-09803-6
OpenAlexW4285474327
LanguageEN
Citations received2
References cited39

The existence of a strong link between socio-economic background and individual preferences has been documented among both children and grown-ups. Here, we study whether such a correlation persists even in a highly homogeneous population of young adults: university students. Our findings indicate that participants living in an area characterized by a high socio-economic environment tend to trust more and are more inclined to reciprocate higher levels of trust, as compared to those coming from less wealthy neighborhoods. This behavioral difference is, at least in part, driven by heterogeneities in beliefs: subjects from the most affluent part of the city have more optimistic expectations on their counterpart’s trustworthiness than those living in a lower socio-economic environment. By contrast, no significant differences emerge in other preferences: generosity, risk attitudes, and time preferences. Finally, we do not find any systematic evidence of out-group discrimination based on neighborhood identity

Contrast (vision) · Demographic economics · Dictator game · Economics · Generosity · Homogeneous · Identity (music) · Inequality · Political science · Population · Sociology · Trustworthiness · Culture, Economy, and Development Studies · Demography · Experimental Behavioral Economics Studies · Mathematics · Psychology · School Choice and Performance · Social Psychology

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Unique citing works2
Citations per year0,5
Citation span2022 - 2026 (5)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 2

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