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A lot of economic and social situations can be described as contests in which agents need to distribute scare resources. Individual behavior plays an important role within these situations, while identity strongly impacts on behavior. This paper asks how group identity impacts the provision of a public good in a contest situation with different prize sharing rules. We show that group identity significantly increases contributions. Moreover, it turns out that identity affects how subjects react to different prize sharing rules. Our findings contribute to an increased understanding of the nature of group identity and its impact on economic behavior.

Cooperation in Public Goods Games: Enhancing Effects of Group Identity and Competition