The Voluntary Provision of Public Goods Under Varying Income Distributions

Kenneth S. Chan
Stuart Mestelman
Rober Moir
R. Andrew Muller

McMaster University
Hamilton, Ontario, Canada
L8S 4M4

Abstract

The Bergstrom, Blume, and Varian (1986) model of voluntary contributions to public goods predicts increases in public good provision as the distribution of income becomes more unequal. This model is tested in the laboratory. Grooup behaviour conforms to the model but individual behaviour does not. Individuals with low incomes overcontribute to the public good; individuals with high incomes undercontribute.
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