Germany versus China: How does social distance influence public good behavior?

Public good contributions have been an interest for many experimental economists, since evidence has shown that people do not always behave rationally and inefficient equilibria are not always realized. This research compares a public good game run in both China and Germany with three treatments in which the social distance factor varies. The outcome shows that under a condition of high social distance, Chinese and German behavior differs with German subjects contributing more to the public good. As social distance decreases, both samples converge to insignificantly different averages of contribution. It is also found that people's contribution is positively correlated with their guess and level of anonymity: the more their identity is exposed, the more they give and the more they believe the other is giving. [ABSTRACT FROM AUTHOR]