I Dream of GINI

Imagine you are young and unattached -- unattached from everything: family, friends, country.  A Martian takes you up in his spaceship and offers to set you down in one of two countries where you will have to make your way in life.  All he tells you is that the average income in Country A is $49,000 and that of Country B is $40,900.  You would probably pick A, right?  It's 20% richer. Now, what if your Martian host offered a bit more information?  He gives you the distribution of incomes in those same two countries. In fact, he shows you this graph. It looks like country A is still the preferred choice if you expect to be in the top half of the population.  But if you expect to be in the bottom half, Country B looks more attractive. Now your choice depends.  It depends on where you see yourself with respect to the rest of the population.  If you think you're above average, you'd pick Country A; if you think you're below average, you'd pick...(Read Full Article)