Repeated Public Goods without punishment
You belong to a randomly
formed group of five players. You are given 20 points each and must decide
simultaneously on how much to invest to the common pool. The total contribution
is multiplied by ½ and added to EACH players payoff - independently
of whether this player contributed or not. There will be six rounds
that players 1, 2 and 3 give 10 points each and players 4 and 5 contribute
nothing. What is the common pool? How many points will each player have?
Answer: 1, 2, and
3 end up with 25 points, the others with 35 points.
Question: What if
only player 1 gives 10 points and the others nothing?
Answer: Player 1 ends
up with 15 points, the others with 25.
Number of players: 20 (4 games)
Time evolution of mean investment:
In the last round all but two players contributed zero.
The two players contributed 2 units each.
Written by Christoph Hauert