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Fairness and Accountability: Testing Models of Social Norms in Unequal

Author

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  • Visser, Martine

    (SALDRU, School of Economics, University of Cape Town)

Abstract

We examine behavioural models involved in the provision of public goods when income inequality exists within groups. Our sample consists of individuals from urban and rural South African fishing communities. We find that behaviour observed in unequal groups does not accord with models of inequality aversion or egocentric altruism which require an equal distribution of final payoffs. On the other hand it is also not the case that individuals completely discount differences in initial allocations of wealth, as proposed by our absolute reciprocity model. Instead our empirical results lends support to a reciprocal model which requires that individuals contribute a proportional share of their initial endowments. Accordingly individuals are only partly held responsible for exogenous differences in initial wealth.

Suggested Citation

  • Visser, Martine, 2013. "Fairness and Accountability: Testing Models of Social Norms in Unequal," SALDRU Working Papers 116, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:116
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    More about this item

    Keywords

    Social Norms; Inequality Aversion; Altruism; Reciprocity; Public goods; National Income Dynamics Study;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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