MobLab

Instructions

Aa

- In each round, each group member receives the same amount of money, and each simultaneously chooses how much to contribute to a water purification project.
- Use the slider to choose your amount and press
**Contribute**. - If group’s total contributions are greater than or equal to the the
**Project Cost**, the project is funded and every group member receives the same benefit (i.e.,**Your Benefit**). - If the group’s total contributions are less than the
**Project Cost**, the project is not funded.

- Your payoff depends both on your contribution and the contributions of the other members of your group.
- If the project is funded (group’s total contributions ≥ project cost):
- each player’s benefit equals
**Your Benefit** - everyone pays his entire contribution, even if group contributions > project cost

- each player’s benefit equals
- If the project is not funded (group contributions < project cost), everyone pays his entire contribution anyway.

- Project cost (the threshold) is $50; Private Benefit is $15; Endowment is $20
- You contributed $12; total group contributions were $60
- You contributed $12; total group contributions were $45

Total Payoff | = | Endowment | – | Contribution | + | Private Benefit |
---|---|---|---|---|---|---|

$23 | = | $20 | – | $12 | + | $15 |

Total Payoff | = | Endowment | – | Contribution |
---|---|---|---|---|

$8 | = | $20 | – | $12 |