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Instructions
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The experiment works as follows:
There are two different roles. You are randomly matched with one other participant and assigned to either the role of country A or the role of country B.
Each of you is given an endowment of three points that you can either keep for your own benefit or contribute to a joint project. Contributed points increase the total payoffs and benefit you and the other country. The points you keep only benefit yourself.
Important:You only learn whether the other country has made a contribution or not at the end of this experiment.
Country A is able to make a transfer of points to country B as an incentive for country B to contribute its points to the joint project. As shown below, country B can accept or reject the transfer.
If country A chooses to offer a transfer and the offer is accepted, the transferred points are taken from country A‘s final payoffs and added to country B‘s payoffs.
Once country B accepts a transfer, it is still free to decide between contributing and keeping its points in the next step.
On the next page, you are given an example and asked to take quick quiz.
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