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Public Goods Game Experiment

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Introduction

A public goods game is an experimental game where subjects choose the amount of money or tokens they would like to place in a public pot. It is done so privately without anyone else knowing about it. The amount is then multiplied equally by a factor, and it is then equally shared among the participants. (Radoc, 2001) Although some players would have contributed less they are allowed to keep tokens or money amounts they did not contribute. Peoples contributions are also heavily subjective what how much their peers contribute, and also benchmarked upon previous contributions (Augenblick & Cunha, 2014) We have conducted a small experiment in our student accommodation to test and see the behavior of people in a natural setting.

Instructions

Participants: 32 participants were recruited from Pure City Student accommodation to participate in this experiment. All participants were university students, no exclusion criteria was included apart from whether they regularly eat chocolate or not.

Design: The …show more content…

This was tested with the famous paradox known as The Ellsberg Paradox, which indicates that decision makers are often ambiguity averse, preferring options with subjectively known probabilities to options with unknown probabilities (Weber & Tan, 2012) Similarly, Risk Aversion could be described as, when an individual is presented with two options they choose the option with a lower risk. People were willing to take the risk in Round 5 because they knew that although there was a chance of numerous participants contributing the maximum value, there would still be some amount they would benefit from and receive. However in round 6 there was a chance that they may not participate in the coin toss and there is a 50% chance they may not receive anything at all. Although they pay-offs were higher there was a still a greater probability they may not receive the

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