The Effect of Distributive Justice on Willingness to Pay for Municipality Child Care: An Extension of the GEF Hypothesis

Public-goods dilemmas are characterized by conflicts between self-interest and the welfare of a group or society at large. Research has identified several factors that enhance cooperation in such dilemmas. However, less is known about how concern for distributive justice affects willingness to contribute in asymmetric public-goods dilemmas. To test the hypothesis that contributions to a common resource is related to perceived fairness, experiments were performed to investigate willingness to pay to the social service of child care in hypothetical societies. Experiment 1 aimed at replicating a previous survey study (Biel et al., 1997). Experiments 2 and 3 were extensions. In all three experiments subjects were asked to indicate how fair they considered different distributions of the quality of child care provided by their municipality. These distributions corresponded to the principles of equality, equity, and need. University students (32, 48, and 32 in the three experiments, respectively) served as subjects. Ratings of perceived fairness were positively related to willingness to pay. Other factors also positively related to willingness to pay included ability to pay, personal need, expected payment from others, and the number of households who had to contribute in order to maintain the quality. Furthermore, decreasing municipality size increased willingness to pay.