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Spread of Information, Inequality and Cooperation

Author

Listed:
  • Pablo Brañas-Garza

    (Loyola University, Cordoba)

  • Elena Molis

    (Department of Economic Theory and Economic History, University of Granada.)

  • Levent Neyse

    (SOEP at DIW, Berlin, Germany)

Abstract

With the rise of information technologies, citizens can compare public good efficiencies between countries easier now and being aware of large efficiency differences may affect tax compliance behavior. We experimentally test whether contributions in the public goods game are sensitive to comparative information regarding marginal per capita returns of other groups. Our experimental results indeed suggest that comparative information creates polarization in contribution levels in the presence of large inequality between comparison groups.

Suggested Citation

  • Pablo Brañas-Garza & Elena Molis & Levent Neyse, 2020. "Spread of Information, Inequality and Cooperation," ThE Papers 20/01, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:20/01
    as

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    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers20_01.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Public Goods; Inequality; Cooperation; Information; Experiment;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • H4 - Public Economics - - Publicly Provided Goods
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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