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In this part, you will be reassigned to a group of 3 participants (you and two other participants in the roomsession). Your group will be matched with another 3-participant group, which is also in the session. The assignments will be made at random by the computer. There is no reason to assume you are matched with the same people as in the first part of the study. One of the groups will be Group A and the other will be Group B. You will never know, now or later, who are the participants in your group or in the other group.

You are in group A.

In the beginning of the experiment, each participant in group A will receive $10 and will independently decide how much, if any, of this money to send to group B. This amount can be any integer number between 0 and 10. Each participant in group A will keep any amount not sent for themselves. Group B will receive the total amount sent from group A, after this amount was tripled by the experimenter. For example, if group A sent a total of $30, group B will receive $90. If group A sent $5, group B will receive $15. This total amount will be split among the 3 members of group B so that each group B member will get one third of the total amount sent. Next, each member of group B will decide independently if and how much of the money they received to send back to group A. They can send back any integer amount between 0 and the amount they received.

The total amount sent back by all three members of group B will be divided among the members of group A, in proportion to the amount each group A participant sent at the beginning. This amount will be added to any amount the participants in group A kept in the first step. Each participant in group B will keep any amount they have not sent back.

Example

Assume that the first participant in group A sends $5, the second participant in group A sends $0, and the third participant in group A sends $10. That makes the first player sent 1/3 of the total amount and the third player sent 2/3 of the total amount. Therefore, the total amount sent by group A is $15. This amount is tripled by the experimenter, so group B receives a total of $45. These $45 are split evenly among the three members of group B, so each group B member receives $15. Assume further that the first member of group B sends back to group A $5, the second member of group B sends back $9 and the third member sends back $1. Group A will receive back a total of $15, which will be split as follows: the first member of group A will receive an additional 5/15*15=$5, the second member of group A will receive an additional 0/15*15=$0, and the third member of group A will receive an additional 10/15*15=$10. The total payoff to each member will be: $5+$5=$10 to the first member of group A, $10+$0=$10 to the second member of group A, $0+$10=$10 to the third member of group A, $15-$5=$10 to the first member of group B, $15-$9=$6 to the second member of group B, and $15-$1=$14 to the third member of group B.

Remember, you will be paid real money at the end of this experiment. You will make your decision only once. Please think it over carefully.

Quiz

Assume that you send $4 to the group. Assume the other two members in your group sent to the other group $1 and $3 respectively. The other group sent back to you $16 in total. {{ formfields }}

You cannot proceed the experiment until your answer to the quiz is correct.

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