Inequity Aversion and Individual Behavior in Public Good Games: An Experimental Investigation


Dannenberg, Astrid ; Riechmann, Thomas ; Sturm, Bodo ; Vogt, Carsten


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URL: http://ub-madoc.bib.uni-mannheim.de/1514
URN: urn:nbn:de:bsz:180-madoc-15140
Document Type: Working paper
Year of publication: 2007
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 300 Social sciences, sociology, anthropology
Subject headings (SWD): Öffentliches Gut , Verhandlungstheorie , Gerechtigkeit , Experiment
Keywords (English): individual preferences , inequity aversion , experimental economics , public goods
Abstract: We present a simple two-steps procedure for a within-subject test of the inequity aversion model of Fehr and Schmidt (1999). In the first step, subjects played modified ultimatum and dictator games and were classified according to their preferences. In the second step, subjects with specific preferences according to the Fehr and Schmidt model were matched into pairs and interacted with each other in a standard public good game and a public good game with punishment possibility. Our results show that the specific composition of groups significantly influences the subjects’ performance in the public good games. We identify the aversion against advantageous inequity and the information about the coplayer’s type as the main influencing factors for the behavior of subjects.
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