M. Vittoria Levati () (Max Planck Institute of Economics, Strategic Interaction Group, Jena, Germany) Matteo Ploner () (Max Planck Institute of Economics, Strategic Interaction Group, Jena, Germany, and University of Trento, Italy) Stefan Traub () (Department of Business and Economics, University of Bremen, Germany)
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We use a two-person public goods experiment to distinguish between efficiency and fairness as possible motivations for cooperative behavior. Asymmetric marginal per capita returns allow only the high-productivity player to increase group payoffs when contributing positive amounts. Asymmetric contributions, however, yield unequal individual payoffs. To assess a priori cooperative preferences, we measure individual 'value-orientations' by means of the decomposed game technique. Overall, our results indicate that fairness (or inequality aversion) is more influential than efficiency in driving behavior.
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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek in its series Jena Economic Research Papers in Economics with number
2007-067.
Find related papers by JEL classification: A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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