In a study conducted at the economic laboratory, Person A is randomly placed in a
group with {{ if player.treatment == 'A' }} 3 other participants {{ else }} other participants {{ endif }}.
The pairing is anonymous, meaning that none of the participants will ever know the identity
of the other participant with whom he or she is paired.
In the experiment, all the group members will make a choice, the experimenter will record this choice,
and then all individuals will be informed of the choices made by other individuals and paid money based on
the choices made by all individuals, as well as a small participation fee. Suppose that neither individual
will receive any other money for participating in the experiment.
{{ if player.treatment == 'A' }}
Each member of the group will receive 10€, in addition to the participation fee. Each member of the group will
then have the opportunity to deposit their money between a PRIVATE and a PUBLIC account. Each member of the
group can deposit 0€, 2€, 4€, 6€, 8€ or 10€ in the PUBLIC account. The remainder is deposited in the PRIVATE
account. Participants' payoffs are equal to the sum of earnings from the PRIVATE account plus earnings from
the PUBLIC account. The individuals keep the money they deposit in the PRIVATE account. This means that each
1€ placed by Person A in the PRIVATE account generates a cash return of 1€ to Person A (and to Person A alone).
On the other hand, the money deposited in the PUBLIC account is multiplied by a positive constant and
shared equally amongst all members of the group. Every member of the group receives the same return for
the money Person A places in the PUBLIC account. Similarly, Person A receives the same return for every amount of
money that the other members of the group deposit to the PUBLIC account. Thus, Person A's earnings are
the amount of money he/she deposits in the PRIVATE account, plus the return from all the money Person A and
the other members of the group deposit in the PUBLIC account. All members of the group have to take
simultaneously the same decision. These choices will determine how much money each individual will receive,
privately and in cash, at the end of the experiment.
Since the decisions are taken simultaneously, Person A does not know the amount of money that other members
of the group will deposit in the PUBLIC account. Other members of the group do not know the amount
of money that Person A, or the other members of the group, will deposit in the PUBLIC account.
In this case, we ask you to evaluate the choices of Person A depending on the return of the PUBLIC account.
You will have to evaluate 2 different cases.
Case 1: Each 1€ deposited in the PUBLIC account gives 0.30€ to the 4 group members.
Case 2: Each 1€ deposited in the PUBLIC account gives 0.75€ to the 4 group members.
Consider the two following examples:
Case 1: Each 1€ deposited in the PUBLIC account gives 0.30€ to the 4 group members.
Person A could deposit 2€ in the PUBLIC account. This gives 8€ to Person A (the return from
the PRIVATE account) and (2 * 0.30) = 0.60€ to each of the 4 group members (including Person A). Person A could
deposit 8€ in the PUBLIC account. This gives
2€ to Person A (the return from the PRIVATE account) and (8 * 0.30) = 2.40€ to each of the 4 group members
(including Person A). Additionally, Person A earns 0.30€ for each 1€ deposited
in the PUBLIC account by other group members. This amount does not depend on his deposit in the PUBLIC
account.
Case 2: Each 1€ deposited to the PUBLIC account gives 0.75€ to the 4 group members. Person A could
deposit 2€ in the PUBLIC account. This gives 8€ to Person A (the return from the PRIVATE account)
and (2 * 0.75) = 1.50€ to each of the 4 group members
(including Person A). Person A could deposit 8€ in the PUBLIC account.
This gives 2€ to Person A (the return from the PRIVATE account) and (8 * 0.75) = 6€ to each of the
4 group members
(including Person A). Additionally, Person A earns 0.75€ for each 1€ deposited in the PUBLIC
account by other group members. This amount does not depend on his deposit in the PUBLIC
account.
Please make sure you understand the situation.
Please evaluate the possible actions of Person A.
{{ else }}
Each member of the group will receive 10€, in addition to the participation fee. Each member of the group will
then have the opportunity to deposit their money between a PRIVATE and a PUBLIC account. Each member of the
group can deposit 0€, 2€, 4€, 6€, 8€ or 10€ in the PUBLIC account. The remainder is deposited in the PRIVATE
account. Participants' payoffs are equal to the sum of earnings from the PRIVATE account plus earnings from
the PUBLIC account. The individuals keep the money they deposit in the PRIVATE account. This means that each
1€ placed by Person A in the PRIVATE account generates a cash return of 1€ to Person A (and to Person A alone).
On the other hand, the money deposited in the PUBLIC account is multiplied by a positive constant and
shared equally amongst all members of the group. More concretely, each 1€ deposited in the PUBLIC account gives
0.30€ to every group member. Every member of the group receives the same return for
the money Person A places in the PUBLIC account. Similarly, Person A receives the same return for every amount of
money that the other members of the group deposit to the PUBLIC account. Thus, Person A's earnings are
the amount of money he/she deposits in the PRIVATE account, plus the return from all the money Person A and
the other members of the group deposit in the PUBLIC account. All members of the group have to take
simultaneously the same decision. These choices will determine how much money each individual will receive,
privately and in cash, at the end of the experiment.
Since the decisions are taken simultaneously, Person A does not know the amount of money that other members
of the group will deposit in the PUBLIC account. Other members of the group do not know the amount
of money that Person A, or the other members of the group, will deposit in the PUBLIC account.
In this case, we ask you to evaluate the choices of Person A depending on the number of the members of the group.
You will have to evaluate 2 different cases.
Case 1: Groups have 4 participants (Person A is paired with 3 other individuals)).
Case 2: Groups have 8 participants (Person A is paired with 7 other individuals)).
Consider the two following examples:
Case 1: Groups have 4 participants (Person A is paired with 3 other individuals)).
Person A could deposit 2€ in the PUBLIC account. This gives 8€ to Person A (the return from
the PRIVATE account) and (2 * 0.30) = 0.60€ to each of the 4 group members (including Person A). Person A could
deposit 8€ in the PUBLIC account. This gives
2€ to Person A (the return from the PRIVATE account) and (8 * 0.30) = 2.40€ to each of the 4 group members
(including Person A). Additionally, Person A earns 0.30€ for each 1€ deposited
in the PUBLIC account by other group members. This amount does not depend on his deposit in the PUBLIC
account.
Case 2: Groups have 8 participants (Person A is paired with 7 other individuals)). Person A could
deposit 2€ in the PUBLIC account. This gives 8€ to Person A (the return from the PRIVATE account)
and (2 * 0.30) = 0.60€ to each of the 8 group members (including Person A). Person A could deposit 8€ in the PUBLIC account.
This gives 2€ to Person A (the return from the PRIVATE account) and (8 * 0.30) = 2.40€ to each of the 8 group members
(including Person A). Additionally, Person A earns 0.30€ for each 1€ deposited in the PUBLIC
account by other group members. This amount does not depend on his deposit in the PUBLIC
account.
Please make sure you understand the situation.
Please evaluate the possible actions of Person A.
{{ endif }}