Last Place Aversion

Scientific American, via Ritholtz:

We’ve also found evidence of last place aversion in laboratory experiments. In one, we created an artificial income distribution by endowing individuals with different sums of money and showing them their “rank”– with each rank separated by $1. We then gave them an additional $2, which they had to give to either the person directly below or directly above them in the distribution. In this income distribution, of course, giving $2 to the person below you means he will jump ahead of you in rank. In our experiments, most people still give to the person below them – after all, the alternative is to give $2 to a person who already has more money than you. People in second-to-last place, however, who would fall to last place when giving the money to the person below them, are the least likely to do so: so strong is their desire to avoid last place that they choose to give the money to a wealthier person (the person above them) nearly half the time. If Americans behave like people in our experiments, then it could be challenging to unite those in the bottom of the income distribution to support redistribution.

Interesting.  I think this also applies to the poor whites in the South who fought for the Confederacy, even though slave owning didn't benefit them.  They just wanted to keep somebody on the social order lower than themselves.