Accounting for real wealth in heterogeneous-endowment public good games
Nikolaos Georgantzís () and
Antonios Proestakis ()
No 10/20, ThE Papers from Department of Economic Theory and Economic History of the University of Granada.
Wealth heterogeneity infuences people's behavior in several socioeconomic environments, especially when groups consisting of "unequal" members have to take a collective action which affects all members equally or proportionally. After eliciting real out-of-lab wealth, we form 4-player groups playing an one-shot public good game with heterogeneous laboratory endowments. Endowing subjects according or against their real wealth gives rise to a series of interesting results. Endowment heterogeneity, lack of real relative wealth information and being "rich" both inside and outside the lab raise contributions. Finally, when eliciting subjects' beliefs, we find out that only relatively "poor" subjects expect others to contribute more than what they actually are prepared to do theirselves.
Keywords: Public goods; experiment; endowment heterogeneity; real wealth (search for similar items in EconPapers)
Pages: 26 pages
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-gth and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:gra:wpaper:10/20
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