Real Wealth and Experimental Cooperation: Evidence from Field Experiments

Abstract

This paper explores how wealth and inequality can affect self-governed solutions to commons dilemmas by constraining group cooperation. It reports a series of experiments in the field where subjects are actual commons users. Household data about the participants-context explain statistically the usually observed wide variation found within and across groups in similar experiments. Participants-wealth and inequality reduced cooperation when groups were allowed to have face-toface communication between rounds. There are implications for a greater awareness of nonpayoff asymmetries affecting cooperation in heterogeneous groups, apart from heterogeneity in the payoffs structure of the game.Cooperation, Collective