TY - UNPD A1 - Detemple, Julian A1 - Kosfeld, Michael T1 - Fairness and inequality in institution formation N2 - A key solution for public good provision is the voluntary formation of institutions that commit players to cooperate. Such institutions generate inequality if some players decide not to participate but cannot be excluded from cooperation benefits. Prior research with small groups emphasizes the role of fairness concerns with positive effects on cooperation. We show that effects do not generalize to larger groups: if group size increases, groups are less willing to form institutions generating inequality. In contrast to smaller groups, however, this does not increase the number of participating players, thereby limiting the positive impact of institution formation on cooperation. T3 - SAFE working paper - 402 KW - Institution formation KW - group size KW - social dilemma KW - social Y1 - 2023 UR - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/71521 UR - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-715211 UR - https://ssrn.com/abstract=4578834 N1 - We gratefully acknowledge support from the Experiment Center at the Leibniz Institute for Financial Research SAFE. PB - SAFE CY - Frankfurt am Main ER -