Do economic inequalities affect long-run cooperation and prosperity?

A-Tier
Journal: Experimental Economics
Year: 2020
Volume: 23
Issue: 1
Pages: 53-83

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract We explore if fairness and inequality motivations affect cooperation in indefinitely repeated games. Each round, we randomly divided experimental participants into donor–recipient pairs. Donors could make a gift to recipients, and ex-ante earnings are highest when all donors give. Roles were randomly reassigned every period, which induced inequality in ex-post earnings. Theoretically, income-maximizing players do not have to condition on this inequality because it is payoff-irrelevant. Empirically, payoff-irrelevant inequality affected participants’ ability to coordinate on efficient play: donors conditioned gifts on their own past roles and, with inequalities made visible, discriminated against those who were better off.

Technical Details

RePEc Handle
repec:kap:expeco:v:23:y:2020:i:1:d:10.1007_s10683-019-09610-5
Journal Field
Experimental
Author Count
3
Added to Database
2026-01-25