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.

Abstract: 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
Date: 2011-06-01
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-gth and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:gra:wpaper:10/20

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