Working Paper BETA #2016-21

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Title : Effects of gain-loss frames on social preferences

Author(s) : Kene Boun My, Nicolas Lampach, Mathieu Lefebvre

Abstract : The paper provides new experimental evidence on the difference between inequality aversion in the gain and in the loss domain. Incorporating loss aversion in the model by Fehr and Schmidt (1999) and relying on a modified dictator game as proposed by Blanco et al. (2011), we demonstrate that the parameter of inequality aversion is lower when the game is framed with losses than with gains. Individuals would be less inequality averse for losses than for gains. The results also manifest that women are more inequality averse than men.

Key-words : social preferences, inequality aversion, modified dictator game, loss aversion, laboratory experiment.

JEL Classification : C70, C91, D63.