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threshold externality generates two equilibria - a suboptimal poverty trap and an optimal rich country equilibrium - which … decisions in a decentralized manner, the economies typically sink into the poverty trap and the optimal equilibrium is never … poverty trap. This experimental environment constitutes a platform onto which more complex features can be added in a program …
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While inequality in resource endowments has been shown to affect cooperation levels in groups, much of this evidence comes from studies of within-group inequality. In an online public goods experiment, we instead examine the effects of payoff-irrelevant inequality in resources between groups on...
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