Need-based transfer systems are more vulnerable to cheating when resources are hidden

Abstract Need-based transfer systems pool risk among interdependent individuals. Such arrangements are bound by two simple rules: Ask for help only when in need and, if you able, give to others who ask. But there may be a temptation individuals break these rules short-term personal profit. Here, we study one factor that enforce honesty need-based relationships: the visibility of resources. Across three experiments employing novel experimental economic game, breaking both increased resources were hidden rather than visible (Experiment 1: n = 82, online convenience sample from US; Experiment 2: n = 80, student 3: n = 42, US). Participants with (1) more likely request not actually (greediness), and (2) fulfill requests help, even they had sufficient available (stinginess). These findings highlight as potential limitation cooperative pooling systems.