This paper compares behavior of heterogeneous groups with homogeneous groups in public goods production. In heterogeneous groups members differ in their opportunity costs of contribution, while in homogeneous groups, members have the same opportunity costs. Members of three-player groups...

Many social dilemmas exhibit nonlinearities and equilibrium outcomes in the interior of the choice space. This paper reports a laboratory experiment studying whether peer punishment promotes socially efficient behavior in such environments, which have been ignored in most experimental studies of...