In each round, each firm chooses whether to build a Clean factory or a Dirty factory. You make your choice by clicking the corresponding arrow. After everyone has chosen, you learn the payoff earned by those choosing Clean as well as the payoff earned by those choosing Dirty.
Your net payoff each round is your firm's profits minus its healthcare costs.
Profits: Your profits depend on your choice as well as the total number of firms choosing Clean (#Clean).
Choose Clean: | Profits | = | (1.5#Clean)×10 |
---|---|---|---|
Choose Dirty: | Profits | = | (1.5#Clean)×100 |
Healthcare Costs: Each player pays healthcare costs, which depend on the number choosing dirty (#Dirty):
Costs | = | 1.5#Dirty |
In a group of 20, 10 of the 19 other firms have chosen Clean while 9 have chosen Dirty. Your payoff depends on your choice:
Choice | Profit | – | Healthcare | = | Payoff |
---|---|---|---|---|---|
Choose Clean |
(1.511) × 10 | – | 1.59 | = | $826.53 |
Choose Dirty |
(1.510) × 100 | – | 1.510 | = | $5,708.84 |