{% extends "global/Page.html" %} {% load otree static %} {% block styles %} {% endblock %} {% block scripts %} {% endblock %} {% block title %} {% endblock %} {% block content %}

Situation Description

In a study conducted at the economic laboratory, Person A is randomly placed in a group with 3 other participants. The pairing is anonymous, meaning that none of the participants will ever know the identity of the other participants with whom he or she is grouped.

In the experiment, all group members will simultaneously make a choice and the experimenter will record this choice. Afterwards, all individuals will be informed of the choices made by the other group members and will be paid money based on the choices made by the individuals of the group, as well as a small participation fee. Suppose that neither individual will receive any other money for participating in the experiment.

Each member of the group receives 10€ and must choose how to divide his/her 10€ between Project 1 and Project 2. Each member of the group can place 0€, 2€, 4€, 6€, 8€ or 10€ in Project 1. The remainder is automatically placed in Project 2. The decisions made by the individuals of the group will determine how much money they will earn. The payments individuals can obtain are determined as follows:

The total earnings for each individual are calculated by adding their earnings from Project 1 to their earnings from Project 2. Person A's earnings are the amount of money he/she places in Project 1, plus the share of the returns generated by all the money that Person A and the other group members place in Project 2. Individuals make their decisions simultaneously, and these decisions will determine how much money each individual will receive privately and in cash at the end of the experiment.

For example, Person A could place 2€ in Project 1 and 8€ in Project 2. This would give Person A (2€ x 1) = 2€ from Project 1 and (8€ x 0.80/4) = 1.60€ from Project 2. Person A could also place 8€ to Project 1 and 2€ to Project 2, which would give Person A (8€ x 1) = 8€ from Project 1 and (2€ x 0.80/4) = 0.40€ from Project 2. Additionally, Person A earns (0.80€/4) = 0.20€ for each 1€ placed in Project 2 by the other group members. This is independent of the decision of Person A.

Since the decisions are made simultaneously, Person A does not know the decisions of other members and other members of the group do not know the decisions of Person A or the other group members.

Before you evaluate the actions of Person A please answer the following comprehension questions:

{% formfield player.PGGI1 %} {% formfield player.PGGI2 %}

                                                                                                                                                                                                                                                                               

{{ endblock }}