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In this stage, you need to make 10 rounds of repeated decisions. Please note that the final profit of this experiment depends on the ECs you have accumulated in 10 rounds. In this experiment your endowment is 10EC in each round. Everybody in each group will allocate a given endowment between two different accounts. One account will be an individual account and the other will be a group account. The rates of return will differ between the two accounts. You have to decide on the number of EC to place in both the Individual and in the Group accounts.

The role of leader In this stage, leader will have the opportunity to write a message at the beginning of each round, and send it to followers. All messages will have this form: “Let's contribute X EC to the group account.” Then decide how to invest the endowment in a group public project.

The role of employee In this stage, employees will receive a message from leader at the beginning of each round, and then decide how to invest the endowment in a group public project. The screen will show you both the current round, and how many rounds there are in this experiment in total.

Decide how to invest the endowment in a group public project. At the beginning, you decide how many of your 10 ECs to invest in the Group Account (G) and how many to invest in your Individual Account (I). These two accounts are explained below.

Individual Account ( I ):Every EC you assign to the Individual account will return one EC at the end of the round. For example, if you invested 10ECs in your Individual account, you would earn 10ECs from the individual account at the end of the round. If you invested 5ECs in your Individual account, you would earn 5ECs from the individual account at the end of the round.

Group Account (G):Your earnings from the Group Account depend on the number of EC that you and your other group members invest in the Group Account. All ECs that you and your group members invest in the Group account are added together and form the group investment. The group investment generates a return of 2 ECs for every one EC invested. These earnings are then divided equally among all group members. Your group has 4 members (including yourself). So, every EC invested in the Group account will return .5 EC to each group member at the end of the round.

Some examples of returns to group investment are illustrated in the table below. The left column lists various amounts of group investment; the right column contains the corresponding personal earnings for each group member:
Total Group investment amount by your group ( TG ) Return to each group member(from Group investment)
0 ECs 0 ECs
4 ECs 2 ECs
10 ECs 5 ECs
14 ECs 7 ECs
20 ECs 10 ECs
40 ECs 25 ECs

As you can see, it does not matter who invests ECs in the Group account. Everyone will get the same return from every EC invested there-whether they invested EC in the Group account or not.

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