The focus of this paper is on altruism and coordination among agents with different income levels. A special form of altruism (fairness based or ethical altruism) is investigated by means of experiments. The definition of altruism used here follows from A. Sen’s concept of obligation, i.e....

We present a general equilibrium model where profit-maximizing firms and non-profit organizations coexist, and the people’s propensity to devote efforts to non-profit activities increases with the stock of social capital. In its turn, the formation of social capital is stimulated by an...

This paper shows that two societies differing because of the people’s initial propensity to devote time and efforts to non-profit activities may never converge. This lack of convergence is interpreted as the tendency of the cultural values and attitudes dominant in each society to perpetuate...