Working Paper No. 1214

Fairness in Winner-Take-All Markets

Published: May 7, 2018Pages: 32Keywords: Winner-take-all reward structures; Fairness; Income inequalityJEL-codes: C91; D63

Fairness in Winner-Take-All Markets Björn Bartling, Alexander W. Cappelen, Mathias Ekström, Erik Ø. Sørensen and Bertil Tungodden


The paper reports the first experimental study on people’s fairness views on extreme income inequalities arising from winner-take-all reward structures.

We find that the majority of participants consider extreme income inequality generated in winner-take-all situations as fair, independent of the winning margin. Spectators appear to endorse a “factual merit” fairness argument for no redistribution: the winner deserves all the earnings because these earnings were determined by his or her performance.

Our findings shed light on the present political debate on redistribution, by suggesting that people may object less to certain types of extreme income inequality than commonly assumed.

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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