Absolute vs. relative poverty and wealth: Cooperation in the presence of between-group inequality

Arbeitspapier

While inequality in resource endowments has been shown to affect cooperation levels in groups, much of this evidence comes from studies of within-group inequality. In an online public goods experiment, we instead examine the effects of payoff-irrelevant inequality in resources between groups on cooperation within equal groups. When all groups are poor or rich, their contribution behaviour is very similar. Relative inequality, when poor and rich groups coexist, leads to lower contributions in rich groups. Our results suggest that this is related to a combination of within- and between-group inequality aversion and to stereotypes about the rich contributing less than the poor

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MUNI ECON Working Paper ; No. 2023-09

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Design of Experiments: Laboratory, Individual ; Design of Experiments: Laboratory, Group Behavior ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Public Goods
• Subject: between-group ; resource inequality ; cooperation ; public goods ; online experiment ; beliefs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Levi, Eugenio ; Ramalingam, Abhijit
• Event: Veröffentlichung
• (who): Masaryk University, Faculty of Economics and Administration
• (where): Brno
• (when): 2023

Further information

• DOI: doi:10.5817/WP_MUNI_ECON_2023-09
• Last update: 10.03.2025, 11:43 AM CET