Is There a Bias Toward Contributing to Local Public Goods? Cultural Effects

Abstract

A series of experiments was designed and implemented to investigate cross-cultural differences in preferences for contributing to local public goods. The research investigates differences between contributions made by participants from the United States, Russia and Kazakhstan. In these experiments each participant has three options: keep money for herself, contribute to a public good that benefits a small group (the local good), or contribute to a public good that benefits the entire group (the global good). The researchers find significant differences in contribution patterns across the three cultures, and find that all participants contribute significantly more to the small group public good than to the large group public good.