Income Inequality, Reciprocity And Public Good Provision: An Experimental Analysis
AbstractThis paper analyses the impact of income inequality on public good provision in an experimental setting. A sample of secondary school students were recruited to participate in a simple linear public goods game where income heterogeneity was introduced by providing participants with unequal token endowments. The results show that endowment heterogeneity does not have any significant impact on contributions to the public good, and that consistent with models of reciprocity, low and high endowment players contribute the same fraction of their endowment to the public pool. Moreover, individuals appear to adjust their contributions in order to maintain a fair share rule. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Economic Society of South Africa.
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Bibliographic InfoArticle provided by Economic Society of South Africa in its journal South African Journal of Economics.
Volume (Year): 75 (2007)
Issue (Month): 3 (09)
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Other versions of this item:
- Andre Hofmeyr & Justine Burns & Martine Visser, 2008. "Income Inequality, Reciprocity and Public Good Provision: An Experimental Analysis," Working Papers 77, Economic Research Southern Africa.
- Andre Hofmeyr & Justine Burns & Martine Visser, 2008. "Income Inequality, Reciprocity and Public Good Provision: An Experimental Analysis," SALDRU Working Papers 23, Southern Africa Labour and Development Research Unit, University of Cape Town.
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