Recent elections, G20 summits, and CEO pay scandals have brought inequality to the forefront of the news. Economists often point out that decisions on, say, tax policy in this arena depend on society’s—and individuals’—attitudes to inequality and fairness. But how you feel about a given inequality depends on how it affects you. Behavioral economics has traditionally examined two perspectives: stakeholders who are directly affected and spectators who view the issue impartially. While research has shown how people react to injustices they experience, studies of spectators reveal how people’s principles drive their support for inequality-mitigating actions.
How informing shoppers can help fight inequality
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