We propose a theoretical model that embeds social identity concerns, as in Akerlof and Kranton (2000), with inequity averse preferences, as in Fehr and Schmidt (1999). We conduct an artefactual ultimatum game experiment with registered members of British political parties, for whom political...

We propose a theoretical model that combines social identity concerns (Akerlof and Kranton, 2000) with inequity averse preferences (Fehr and Schmidt, 1999). Our subjects are registered members of British political parties for whom identity and redistribution are salient. (1) Proposers and...