TY  - RPRT
        AU  - Detemple, Julian
AU  - Kosfeld, Michael
        TI  - Fairness and Inequality in Institution Formation
        PY  - 2023/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16464
        UR  - https://www.iza.org/publications/dp16464
        AB  - A key solution for public good provision is the voluntary formation of institutions that commit players to cooperate. Such institutions generate inequality if some players decide not to participate but cannot be excluded from cooperation benefits. Prior research with small groups emphasizes the role of fairness concerns with positive effects on cooperation. We show that effects do not generalize to larger groups: if group size increases, groups are less willing to form institutions generating inequality. In contrast to smaller groups, however, this does not increase the number of participating players, thereby limiting the positive impact of institution formation on cooperation.
        KW  - institution formation
KW  - group size
KW  - social dilemma
KW  - social preferences
        ER  -