Research

Working Paper

Spread of Information, Inequality and Cooperation

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.

Keywords: cooperation, Experiment, Inequality, information, Public Goods,