Instructions

This is a pension game with 3 players. You will be ordered in a sequence and labelled as Player 1, Player 2 and Player 3.

Player 2 and Player 3 will receive an endowment of 9 Monetary Units. They will be able to decide how many of them, from 0 to 7, to transfer to the previous player.

The amounts transferred and received are indicated as T and R below, respectively.

The payoff for Player 1 will be equal to: 2 x ( R + 1 )

The payoff for Player 2 will be equal to: ( 9 - T ) x ( R + 1 )

The payoff for Player 3 will be equal to: 9 - T