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

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  • Kassas, Bachir
  • Palma, Marco
  • Hall, Charles

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.

Suggested Citation

  • Kassas, Bachir & Palma, Marco & Hall, Charles, 2018. "Self-Serving Deviations from Standard Behavior: Investigating Income and Relative Return Differentials in Voluntary Contributions Mechanisms," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266456, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea18:266456
    DOI: 10.22004/ag.econ.266456
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    References listed on IDEAS

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