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An experimental investigation of endowment source heterogeneity in two-person public good games

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  • Spraggon, John
  • Oxoby, Robert J.

Abstract

We find an "inverse found money effect" in two-person public good experiments in which individuals earning their endowments contribute more and engage in "altruistic conditional cooperation" when they are matched with those whose endowment is provided by the experimenters.

Suggested Citation

  • Spraggon, John & Oxoby, Robert J., 2009. "An experimental investigation of endowment source heterogeneity in two-person public good games," Economics Letters, Elsevier, vol. 104(2), pages 102-105, August.
  • Handle: RePEc:eee:ecolet:v:104:y:2009:i:2:p:102-105
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    References listed on IDEAS

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    1. Jennifer Zelmer, 2003. "Linear Public Goods Experiments: A Meta-Analysis," Experimental Economics, Springer;Economic Science Association, vol. 6(3), pages 299-310, November.
    2. Keser, Claudia & van Winden, Frans, 2000. " Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 23-39, March.
    3. R. Mark Isaac & James M. Walker, 1988. "Group Size Effects in Public Goods Provision: The Voluntary Contributions Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 179-199.
    4. Todd L. Cherry & Peter Frykblom & Jason F. Shogren, 2002. "Hardnose the Dictator," American Economic Review, American Economic Association, vol. 92(4), pages 1218-1221, September.
    5. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    6. Oxoby, Robert J. & Spraggon, John, 2008. "Mine and yours: Property rights in dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 703-713, March.
    7. Cherry, Todd L. & Kroll, Stephan & Shogren, Jason F., 2005. "The impact of endowment heterogeneity and origin on public good contributions: evidence from the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 357-365, July.
    8. Stephan Kroll & Todd Cherry & Jason Shogren, 2007. "The impact of endowment heterogeneity and origin on contributions in best-shot public good games," Experimental Economics, Springer;Economic Science Association, vol. 10(4), pages 411-428, December.
    9. James M. Poterba, 1997. "Demographic structure and the political economy of public education," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(1), pages 48-66.
    10. Jeremy Clark, 2002. "House Money Effects in Public Good Experiments," Experimental Economics, Springer;Economic Science Association, vol. 5(3), pages 223-231, December.
    11. Harrison, Glenn W & Hirshleifer, Jack, 1989. "An Experimental Evaluation of Weakest Link/Best Shot Models of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 201-225, February.
    12. Anabela Botelho & Glenn W. Harrison & Marc A. Hirsch & Elisabet E. Rutstrom, 2001. "Bargaining behavior, demographics and nationality: a reconsideration of the experimental evidence," NIMA Working Papers 16, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    13. Buckley, Edward & Croson, Rachel, 2006. "Income and wealth heterogeneity in the voluntary provision of linear public goods," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 935-955, May.
    14. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
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    Citations

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    Cited by:

    1. Hackinger, Julian, 2016. "Not All Income is the Same to Everyone: Cognitive Ability and the House Money Effect in Public Goods Games," MPRA Paper 70836, University Library of Munich, Germany.
    2. repec:eee:ecolec:v:146:y:2018:i:c:p:17-25 is not listed on IDEAS
    3. Reinstein, David & Reiner, Gerhard, 2009. "Desert and Tangibility: Decomposing House Money Effects in a Charitable Giving Experiment," Economics Discussion Papers 2937, University of Essex, Department of Economics.
    4. William Morrison, Robert Oxoby, 2016. "Risk Taking, Intertemporal Choice, and Loss Aversion," LCERPA Working Papers 0096, Laurier Centre for Economic Research and Policy Analysis, revised 01 Jul 2016.
    5. Antinyan, Armenak & Corazzini, Luca & Neururer, Daniel, 2015. "Public good provision, punishment, and the endowment origin: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 56(C), pages 72-77.
    6. Kesternich, Martin & Lange, Andreas & Sturm, Bodo, 2014. "The impact of burden sharing rules on the voluntary provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 107-123.
    7. Kesternich, Martin & Lange, Andreas & Sturm, Bodo, 2014. "On the performance of rule-based contribution schemes under endowment heterogeneity," ZEW Discussion Papers 14-055, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Andreas Löschel & Dirk Rübbelke, 2014. "On the Voluntary Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 81(322), pages 195-204, April.
    9. repec:kap:expeco:v:21:y:2018:i:1:d:10.1007_s10683-017-9535-2 is not listed on IDEAS
    10. Carlsson, Fredrik & He, Haoran & Martinsson, Peter, 2010. "Windfall vs. Earned Money in the Laboratory: Do They Affect the Behavior of Men and Women Differently?," Working Papers in Economics 468, University of Gothenburg, Department of Economics.

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