New method reveals how inequality aversion impacts risk-taking and social status.
A new method called Coupled Lotteries was created to study how people feel about inequality. In this method, two people are given the same choices, and they decide if they want their outcomes to be linked or not. The study found that people who prefer linked outcomes are more cautious with risks, care about their social status, and use insurance more often. However, this preference is not linked to how generous they are in sharing money with others.