Abstract
The multi-dimensional nature of social exclusion requires several perspectives in understanding its causes and consequences. Focus on the topic is largely centred around questions of material deprivation. However, as poverty and inequality are inextricably linked to questions of access and inclusion, a holistic approach is required. Consequently, we explore how imposed relational asymmetries which manifest as differences in the ability to exercise personal agency and in turn, engender wealth inequalities, affect social cooperation in future interactions. To do this, we generate wealth inequalities through two Prisoner’s Dilemma games, where one party is excluded from participating in the determination of the outcomes of the game. The effects of this asymmetry in social participation on ex post cooperation is examined using a Public Goods game. We find that the presence of prior asymmetric influence in social decision-making subsequently reduces contributions to the public good, independent of endowment level. This reduction in social welfare is driven by the under-contribution from players who were excluded in prior social interactions. Simply put, the data shows that a history of social exclusion reduces subsequent public goods provision, independent of material inequality.
Highlights
The ability to exercise personal agency in one’s choices is a key aspect of the capabilities approach to understanding poverty and inequality, where agency refers to a person’s role as a member of society, with the ability to participate in economic, social, and political actions [1]
Individuals who find themselves in the position of having their agency removed, and subsequently being on the receiving end of disadvantageous inequality, may perceive the process that generated the endowments in the public goods game as being unfair
We explore the use of asymmetric decision making power for equal or unequal wealth; the effects of this endogenously generated inequality on cooperation; and, as our main interest, the effects of social exclusion, by means of social decision-making, on the ex post provision of public goods
Summary
The ability to exercise personal agency in one’s choices is a key aspect of the capabilities approach to understanding poverty and inequality, where agency refers to a person’s role as a member of society, with the ability to participate in economic, social, and political actions [1]. The outcomes of these prior interactions generate wealth heterogeneity which set the starting endowments in the public goods game played subsequently. We are interested in the extent to which unequal endowments, generated through prior play in an inclusive environment, affect subsequent decisions to cooperate in the provision of a public good, compared to inequalities generated through prior play in a setting where some have not been able to exercise their agency. We find that the presence of asymmetric agency in prior interactions reduces subsequent contributions to the public good, independent of endowment level This reduction in social welfare is driven by the under-contribution of players whose agency was removed during prior play. The inability of an individual to exercise agency in implementing their desired choice reduces subsequent public goods provision, independent of material inequality
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