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This experiment is an investment game. You can use your current account balance of {{participant.Total}} to make investment decisions in a virtual farmland market.

The experiment will consist of 3 trading periods. In each period, you can purchase farms from the auctioneer. There are 3 irrigated farmlands with different water levels (high, mid, and low) and 1 dryland farm available to be purchased in each period.

Introduction of farmland

Purchasing farm can generate income. The return of the farmland is related to the water level and follows a distribution. The farmland with a higher water levels has a larger mean of return. The farmland lasts only one period, which means you only get a return once for each farmland in the whole game.

In general, the average water level of the aquifer will decline by 20 feet each period because of the use of water for agricultural production on the farmland. The irrigated farmlands available in each period have 3 types, High, Mid, and Low. Besides, one dry farmland is available in each period too. The Mid type has the same water level as the average water level of the aquifer, while the water level of the High type farmland is 20 feet higher than the Mid type farmland and the water level of Low type farmland is 20 feet lower than the Mid type farmland. With the decline of the average water level of the aquifer, the High, Mid, and Low types of farmlands in the later period have lower water levels compared to the farmland in the earlier period, respectively, which means the possibility of getting higher water level farmland available for auction is less in the later period. The water level of the farmland available to be sold in each period is listed in the following table.
Period Average water level of the aquifer High return farmland Mid return farmland Low return farmland Dry farmland
1 70 feet 90 feet 70 feet 50 feet 0 feet
2 50 feet 70 feet 50 feet 30 feet 0 feet
3 30 feet 50 feet 30 feet 0 feet 0 feet

Table 1 shows the mean, min, and max returns at different water levels.
Table 2 shows the distribution of the returns at different water levels.
Table 3 is bar chart of the distribution of returns at different water levels.

Auction Rule

You can use your showup fee and money received from Task 1 to purchase farmland assets. In each period, 4 farmlands will be auctioned sequentially. The auction will in descending order of the water level with the expected return of farmland from the highest level to the lowest level. The cost of the successfully sold farmland will be automatically deducted from the winners’ account. At the end of each period, we will randomly generate the returns for your purchased farmland. The returns of your farmland will be automatically added to your account.

Payment Rule

500 points will be awared as the completion fee after the experiment.

The total points left in your experiment account will be converted into US dollars as your final payment. We will pay you in cash/via your student account according to your player ID. If you make negative net points and less than -200 in Part 2 of the experiment, we will make your net points in Part 2 equal to -200, which means you will still get the payment from Part 1 + show up fee + completion fee-$2.00. Otherwise, your payment = part 1 reward + show up fee + completion fee + part 2 return.

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