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In this study, all payments will be expressed in Lira, an experimental currency. The Lira you earn will be converted to dollars at a predetermined conversion rate (detail provided later), and that payment will be deposited to your Prolific account.

Today’s session will consist of multiple periods. Each period, the DM will be given a budget of 1,000 Lira to invest in some combination of a production project and a tree-planting project.

Production Project

Each period, the DM is required to invest a fixed amount of 400 Lira in a production project. The investment in the production project generates a financial return of 400a, where a is randomly generated based on a uniform distribution between 0.5 and 1.5. As this is a divisional investment, the value of a is only known to the DM with certainty. From this amount (400a), the DM freely decides how much to return to the COO. Any remaining earnings not returned to the COO will be maintained in the division to support other general divisional activities.

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