Your task is to design a communication plan that will be shown to pairs of other participants.
Each of these participants receives 10 tokens.
They must decide how many of their 10 tokens to put in a shared account.
Any tokens not put in the shared account stay in their private account.
After both participants made their decisions, their contributions to the shared account are added.
They each receives the total contribution to the shared account
multiplied by a return factor, in addition to the tokens they kept in their private account.
Click here for more detailed information about the other participants' payoffs
Player 1's earnings are the sum of:
- the tokens Player 1 kept in their private account
- the total of Player 1 and Player 2's contributions to the shared account multiplied by the return factor
If both players contribute more to the shared account, they both earn more than if they both contribute nothing.
If the return factor is below 1, one player can earn more by contributing less when the other player contributes more.
But this hurts the other player, who loses more than the first player gains.
If the return factor is above 1, contributing all tokens to the shared account gives the highest earnings.
Importantly, in some rounds players make their contribution decision without seeing the value of the return factor. This is when you will intervene.
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