Brekke, Kjell Arne; Nyborg, Karine; Rege, Mari - Økonomisk institutt, Universitetet i Oslo - 2005
To secure their membership in a popular group, individuals may contribute more to the group’s local public good than they would if group formation were exogenous. Those in the most unpopular group do not have this incentive to contribute to their group. Substantial differences in individual...