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The Impact of Endowment Heterogeneity and Origin on Contributions in Best-Shot Public Good Games

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  • Todd L. Cherry
  • Stephan Kroll
  • Jason Shogren

Abstract

Economists and psychologists have long argued the origin of wealth influences individual behavior. In a previous study (Cherry et al., 2005), we found the origin of endowment did not significantly affect behavior in linear public good games with summation contribution technology. In such games, however, both Nash behavior (everybody gives nothing) and social optimal behavior (everybody gives the entire endowment) call for symmetric levels of contributions. Results from this new study indicate that the origin of wealth might matter in more asymmetric situations, such as in a best-shot public good game with heterogeneous groups. Copyright Economic Science Association 2007

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Bibliographic Info

Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 04-10.

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Date of creation: 2004
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Handle: RePEc:apl:wpaper:04-10

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Web page: http://www.business.appstate.edu/departments/economics/
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Cited by:
  1. Visser, Martine & Burns, Justine, 2006. "Bridging the Great Divide in South Africa: Inequality and Punishment in the Provision of Public Goods," Working Papers in Economics 219, University of Gothenburg, Department of Economics.
  2. Laura Taylor & Mark Morrison & Kevin Boyle, 2010. "Exchange Rules and the Incentive Compatibility of Choice Experiments," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(2), pages 197-220, October.
  3. James Konow & Tatsuyoshi Saijo & Kenju Akai, 2008. "Morals and Mores? Experimental Evidence on Equity and Equality from the US and Japan," Levine's Working Paper Archive 122247000000002055, David K. Levine.
  4. Fabian Winter, 2013. "Fairness norms can explain the emergence of specific cooperation norms in the Battle of the Prisoners Dilemma," Jena Economic Research Papers 2013-016, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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