This paper analyzes the impact of inequality in the distribution of endowments
on cooperation. We conduct a lab experiment using a dynamic Public Good
Game to test this relation We introduce the possibility of choosing among three different
redistribution rules Equidistribution Proportional to contribution and Progressive
to endowment. This novelty in a dynamic environment allows us to analyze how the
inequality with in groups changes according to individual choices and to investigate if
players show inequity averse preferences Results show that inequality has a negative
impact on individual contribution. Players act in order to reduce the initial exogenous
inequality. Indeed in the Treatment with the highest level of inequality agents vote for
reducing the endwment heterogenery Moreover individual contribution is strongly
influenced by others’ contributions.

• Voting for the distribution rule in a Public Good Game with heterogeneous endowments