Abstract:
This study uses an online laboratory experiment and a post-experimental survey to test whether the
Mastercard Foundation (MCF) scholarship programme causally influences the creation of cognitive
social capital among University of Pretoria recipients. Cognitive social capital, which is based on
commonly shared norms among subjects, leads to honest and cooperative behaviour. It is necessary
for ease of information flow, a reduction in transaction costs, and allowing communities to deal with
social dilemmas like common-pool resource management. The study used incentivised economic
experiments on randomly selected subjects drawn from a control group (non-MCF students) and a
treated group (MCF students). The experimental results from the two groups were compared to check
the differences in terms of levels of trust, reciprocity, altruism, cooperation, in-group favouritism and
out-group discrimination. Our results show that the scholarship programme has a significant impact
only on levels of in-group favoritism and out-group discrimination. The post-experimental survey
showed that MCF and non-MCF subjects were similar in terms of stated pro-social behavior
perceptions and in-group social capital creation.
