Abstract
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, i.e. the effect of mere exposure to inequality. 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. We find suggestive evidence that this may be related to stereotypes about the rich contributing less than the poor.
Funding source: Walker College of Business, Appalachian State University
Acknowledgments
The authors thank Lata Gangadharan, Shaun Hargreaves Heap, Anmol Ratan, Brock Stoddard, seminar participants at Masaryk University and at the Euregio Workshop 2022, and two anonymous referees for helpful comments and suggestions. Funding from Appalachian State University is gratefully acknowledged. This study has been exempted from review by the Institutional Review Board at Appalachian State University (Study No. 21-0106).
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Conflict of interest: None declared.
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Supplementary Material
This article contains supplementary material (https://doi.org/10.1515/bejeap-2024-0350).
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- Research Articles
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- Priced Out: Do Adolescents from Low-Income Families Respond More to Cost-Sharing in Primary Care?
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