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Conspicuous wealth undermines cooperation
Wealth inequality and wealth visibility can both potentially affect levels of cooperation in a society and overall levels of economic success. Akihiro Nishi et al. use an online game to test how the two factors interact. Surprisingly, wealth inequality by itself did not damage cooperation or overall wealth as long as players do not know about the wealth of others. But when players' wealth was visible to others, inequality had a detrimental effect.
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