The Robin Hood effect is an economic occurrence where income is redistributed so that economic inequality is reduced. That is a redistribution of economic resources due to which the economically disadvantaged gain at the expense of the economically advantaged.[1] The effect is named after English folkloric figure Robin Hood, said to have stolen from the rich to give to the poor.
The Robin Hood effect should not be mistaken for the Robinhood effect, which refers to the increasing significance and attention on small retail investors using trading platforms like Robinhood, characterized by their accessibility and low entry barriers.[1]