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Recall that you and the other employee can give as much, or as little, of that 3000 Lira to fund the joint project and keep whatever is not invested to yourselves. That is, you can invest anything between 0 and 3000 Lira to fund the joint project.

Any amount invested by you and the other employee will be multiplied by 3.

This amount will then be equally shared between you and the other employee.

Now please make your Stage 1 decision (Stage 1 has only one period):

How much of the 3000 Lira would you like to invest in the joint project? You will keep the amount not invested as part of your payoff.

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(0 - 3000 Lira)

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