TY - RPRT AU - Reuben, Ernesto AU - Riedl, Arno TI - Public Goods Provision and Sanctioning in Privileged Groups PY - 2007/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 2916 UR - https://www.iza.org/index.php/publications/dp2916 AB - In public good provision, privileged groups enjoy the advantage that some of its members find it optimal to supply a positive amount of the public good. However, their inherent asymmetric nature may make the enforcement of cooperative behavior through informal sanctioning harder to accomplish. In this paper we experimentally investigate public good provision in normal and privileged groups with and without decentralized punishment. We find that compared to normal groups, privileged groups are relatively ineffective in using costly sanctions to increase everyone's contributions. Punishment is less targeted towards strong free-riders and they exhibit a weaker increase in contributions after being punished. Thus, we show that privileged groups are not as privileged as they initially seem. KW - privileged groups KW - public goods KW - punishment KW - cooperation KW - collective action ER -