Imagine you’re at a carnival playing a game of chance. At first, you don’t know your status; you’re behind a veil of ignorance. When it’s time to distribute rewards, you vote for inequality favoring the top positions. But as soon as the veil is lifted and your status is randomly assigned, self-interest kicks in. If you end up in a high-status role, you’re satisfied with the existing inequality. However, if you land in a low-status position, you want more equality. It’s like going from accepting a rigged game to demanding fairness when it affects you personally. These preferences aren’t set in stone though; they change along with shifts in social status. As inequality grows, those in low-status positions demand more equality. This polarizes preferences, with individuals from different social statuses having contrasting opinions on inequality.
Abstract
Most people in the United States agree they want some income inequality but debate exactly how much is fair. High-status people generally prefer more inequality than low-status individuals. Here we examine how much preferences for inequality are (or are not) driven by self-interest. Past work has generally investigated this idea in two ways: The first is by stratifying preferences by income, and the second is by randomly assigning financial status within lab-constructed scenarios. In this paper, we develop a method that combines both experimental control and the social experience of inequality—a simulated society experiment. Across two experiments (N = 138, observations = 690), participants voted on the distribution of rewards—first behind a veil of ignorance, and then when they were randomly assigned a status within a game of chance. Status varied repeatedly across five rounds, allowing us to measure dynamic preferences. Under the veil of ignorance, people preferred inequality favoring the top status. When the veil of ignorance disappeared, self-interest immediately influenced inequality preferences. Those who randomly landed in top positions were satisfied with the status quo established under the veil of ignorance, whereas those who randomly landed in bottom positions wanted more equality. Yet these preferences were not stable; decisions about the optimal level of inequality changed according to changes in social status. Our results also showed that, when inequality grows in a society, preferences regarding inequality become polarized by social status. Individuals in low-status positions, particularly, tend to demand more equality.
Dr. David Lowemann, M.Sc, Ph.D., is a co-founder of the Institute for the Future of Human Potential, where he leads the charge in pioneering Self-Enhancement Science for the Success of Society. With a keen interest in exploring the untapped potential of the human mind, Dr. Lowemann has dedicated his career to pushing the boundaries of human capabilities and understanding.
Armed with a Master of Science degree and a Ph.D. in his field, Dr. Lowemann has consistently been at the forefront of research and innovation, delving into ways to optimize human performance, cognition, and overall well-being. His work at the Institute revolves around a profound commitment to harnessing cutting-edge science and technology to help individuals lead more fulfilling and intelligent lives.
Dr. Lowemann’s influence extends to the educational platform BetterSmarter.me, where he shares his insights, findings, and personal development strategies with a broader audience. His ongoing mission is shaping the way we perceive and leverage the vast capacities of the human mind, offering invaluable contributions to society’s overall success and collective well-being.