Problem Set (Due 5/1)
You have to decide whether to invest $100 in a friends enterprise, where in a years
time the money will increase to $130. You have agreed that your friend will then repay
you $120, keeping $10 for himself. But instead he may choose t
Non-rival or non-depletable: multiple users can simultaneously
consume same unit of good without affecting the consumption of
Non-excludable: cannot exclude those who do not pay for the good.
1 . What problems came from having the resource owned jointly in Experiment I? Why do you
think people behaved as they did in Experiment I?
2. How important is anonymity? If anonymity did not exist, do you think that our results would
have been affected?
Quid Pro Quo
Rotating credit associations.
In a rotating credit association, a given
number of individuals meet repeatedly, say,
every month, and each member contributes a
fixed amount of money to a common pool.
The pool is then awarded to a member (often
THE END OF APARTHEID IN SOUTH AFRICA
By the end of the 1980s it was clear to almost all interested parties that the days of
apartheid and of white minority rule in South Africa were numbered. The only questions were
whether the end would come sooner or la
Vampire Bats and Reciprocal Altruism
Vampire bats feed off the blood of other animals.
They need to eat 50100% of their body weight each
night to survive.
They cannot survive for long without eating.
Vampire bats have developed a form of cooperation
In the first exercise, you will jointly own a resource. The
resource is the M&Ms on this plate. The plate starts
with (10 times the number of individuals present) M&Ms
on it. Since 18 students are present today, 180 M&Ms
This number of M
commitment An action taken at a pregame stage, stating what
action you would take unconditionally in the game to follow.
compellence An attempt to induce the other player(s) to act to
change the status quo in a specified manner.
contract In this