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Self-Serving Deviations from Standard Behavior: Investigating Income and Relative Return Differentials in Voluntary Contributions Mechanisms

Bachir Kassas, Marco Palma () and Charles Hall

No 266456, 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida from Southern Agricultural Economics Association

Abstract: Using a public goods experiment with heterogeneous income and marginal-per-capita-returns (MPCR), this paper investigates the main drivers of behavior for high- and low-income individuals playing separately and in mixed groups. A finite mixture model was used to split each income type into two categories. While a third of low-income individuals were “free-riders”, the dominant portion was classified as “opportunists”, who try to benefit from the presence of high-income individuals by encouraging contributions through cooperation. “Free-riders” were far less among high-income individuals, where the overruling majority were “selfists” who, due to self-interest and caution, contribute less when low-income individuals are present.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp
Date: 2018-02-02
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