Instructions
This experiment will last for one period. At the beginning of the experiment, each group member will be
randomly allocated some tokens. We refer to this as your endowment.
Your task is to decide how many of the tokens you have been allocated you want to contribute to a project and
how many of them to keep for yourself. The other member of your group has to make the same decision. Each group
member decides simultaneously, that is, without knowing what the other one has done.
Every token that you do not contribute to the project automatically belongs to you and earns you one point.
For the tokens contributed to the project the following happens: The total contributions to the project will be
calculated by adding up the individual contributions made by both group members. This total will then be multiplied
by 1.5 and this amount will be divided equally among both members of the group. Thus every group member receives
0.75 points for every token contributed to the project.
Your bonus amount therefore consists of two parts:
(1) The tokens which you have kept for yourself (“Income from tokens kept”) whereby 1 token = 1 point.
(2) The “Income from the project”. This income is calculated as follows:
Your income from the project = 0.75 times the total contributions to the project made by both group members.
Your bonus amount = Income from tokens kept + Income from the project
| = (Your endowment – your contribution) + 0.75 × (Sum of contributions made by both members
in the group)