Control Questions: 4 - solution

Assume in a round, the information you get is as in the figure above:

• If instead at the first bargaining stage, your proposed contribution is 0 tokens and your match’s proposed contribution is 1 token , and at the second bargaining stage both you and your match choose to keep the same proposal. What happens next? Please select the correct answer by clicking the letter corresponding to each option.

  Your answer is {{ if player.quiz_Bargain_3_check }} correct {{ else }} not correct {{ endif }}. The outcome of the bargaining stage depends on the sum of your proposed contribution and your match’s proposed contribution. If the sum of your and your match’s contribution is > 2, the program will randomly pick one of the proposals as the final cost sharing plan, and this public good will be successfully produced. This round of bargaining is over. Thus, the correct answer is A.

  A	Bargaining failed: you and your match both lose 1 token.
  B	Bargaining succeeded: you’ll contribute 0 token, and your match will contribute 2 tokens to the production of public good.
  C	Bargaining succeeded: you’ll contribute 1 token, and your match will contribute 1 token to the production of public good.
  D	Bargaining succeeded:
  	With 50% probability: you’ll contribute 0 token; your match will contribute 2 tokens to the production of public good With 50% probability: you’ll contribute 1 token; your match will contribute 1 token to the production of public good
  E	Bargaining continues: You and your match move to the next bargaining stage.