Grid-group cultural theory and behaviour in a public good experiment

ABSTRACT

This paper investigates the interaction between one’s cultural orientation, as derived from Grid-Group Cultural Theory (GGCT), and behaviour in a public good (PG) experiment with and without the opportunity to monitor and punish. We observe that high-group individuals contribute more than low-group individuals and that high-grid individuals are more likely to monitor and punish than low-grid individuals. Results confirm that one’s culture interacts in predictable ways with economic institutions. Future research is warranted to determine whether such institutions can be designed to appeal to specific cultures in order to achieve public policy goals more effectively.

KEYWORDS:

• Grid-group cultural theory
• public good experiment
• culture
• experimental economics
• cooperation

JEL CODES:

• C92
• H41
• D82

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ GGCT therefore posits 4 cultures: hierarchist (high-group/high-grid), fatalist (low-group/high-grid), egalitarian (high-group/low-grid), and individualist (low-group/low-grid).

² Here, we discuss only parts 1 and 2.

³ Instructions for part 2 (including comprehension questions) were provided after the completion of part 1.

⁴ Seven participants were removed from the regression analysis because we were unable to discern their GGCT (e.g. answering each question with ‘4’, on a 7 point Likert scale, prevents discerning a participant’s designation).

⁵ Disregarding grid-group designations, average contributions across part 1 (11.63*** (0.776)) and part 2 (13.46*** (1.23)) are significantly different (1.83** (0.936)). Consistent with the literature, the opportunity for punishment increased group account contributions.

⁶ The discrete decisions to monitor and punish are analysed with a probit specification.

Additional information

Funding

This work was supported by the University of Massachusetts Lowell.