{% extends "global/Page.html" %} {% load otree %} {% block title %}Introduction{% endblock %} {% block content %} Experiment 3
For this task, you are a member of a group of four players. Each member has 50 Rands worth of airtime. Each member of the group must decide how much to contribute to a group project. You can decide to contribute any amount between 0 and 50 Rands. What you do not contribute to the project is yours to keep.
After all members of your group have contributed, we will double the total amount that the group contributed and divide the amount equally between the four members of the group, so that each member gets the same payoff from the project regardless of how much they contributed.
Example 1: Nobody contributes to the project. There is nothing to be doubled. Each member of the group gets zero from the project and keeps his 50 Rands worth of airtime.
Example 2: Everybody contributes all his 50 Rands worth of airtime to the project. Therefore, the total amount in the project is 200 Rands worth of airtime. We multiply this amount by 2 so that 400 Rands worth of airtime is available for the group. After sharing equally this amount everybody in the group ends up with a payoff of 100 Rands worth of airtime.
Example 3: Everybody contributes 10 Rands worth of airtime to the project. Therefore, the total amount in the project is 40 Rands worth of airtime. We multiply this amount by 2 so that 80 Rands worth of airtime is available for the group.
After sharing equally this amount everybody in the group gets 20 Rands worth of airtime from the project. In addition to that, you have the 40 Rands worth of airtime that you did not put in the project. Your total payoff of the game is therefore 60 Rands worth of airtime.
Example 4: 2 People contribute 10 Rands and 2 people contribute 30 Rands. The total amount in the project is 80 Rands, which is doubled to give 160 Rands. This is shared equally among the people in the group, such that each gets 40 Rands from the project.
The total payoff is therefore 80 Rands (the 40 Rands not contributed plus the 40 Rands from the project) for those who contributed 10 Rands and 60 Rands (the 20 Rands not contributed plus the 40 Rands from the project) for those who contributed 30 Rands.
{% next_button %} {% endblock %}