We consider an environment where agents must be allocated to one of three kinds of hierarchical positions with limited capacities. No monetary transfers are allowed. We assume that agents' payoffs for being assigned to medium positions are their private information, and we consider bayesian...

We investigate the effects of inequality in wealth on the incentives to contribute to a public good when agents are inequity averse and may differ in ability. We show that equality may lead to a reduction of public good provision below levels generated by purely selfish agents. But introducing...