Endowment Inequality in Common Pool Resource Games: An Experimental Analysis
Garrett Milam & Andrew Monaco
Abstract
This work addresses whether heterogeneity in player endowments influences investment decisions in common pool resource (CPR) games, shedding light on the relationship between inequality and economic decision making. We explore two theoretical avenues from behavioral economics—linear other-regarding preferences and inequity aversion—and examine the predictions of each with a laboratory experiment. Our experimental results roundly reject the majority of these explanations: in treatments with endowment inequality, high endowment individuals invest more in the common pool resource than low endowment individuals. We discuss these results in the context of the literature on psychological entitlement and positional preferences.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.