The document provides instructions for the second set of rounds of a game involving farmers and a provider. There are now four options for farmers: 1) pay tokens and use the public irrigation infrastructure, 2) hold tokens without paying, 3) invest in a privately owned alternative water source, or 4) petition the provider to improve infrastructure while still paying. The private water sources draw from a shared underground source, so having more farmers choose that option reduces the available water. Farmers who petition bear a cost and deduct tokens from the provider's earnings. The provider again chooses whether to keep tokens received or invest in infrastructure improvements. The earnings for farmers and provider depend on the infrastructure functionality and choices made.
2. New 3rd option for Farmers: Alternative
ALT
(Private)
Farmers
Provider
Repair &
maintain
Take water
to grow crop
Irrigation
Infrastructure
(Public)
Take water
to grow crop
• The second set of rounds is identical to the previous rounds except
for TWO changes –there are two new options for Farmers.
• First, there is a new third option available to Farmers:
1) The first option is that Farmers PAY their 10 tokens and then
take water from the public irrigation infrastructure to grow
crop.
2) The second option is that Farmers HOLD payment and just keep
their 10 tokens.
3) The THIRD option is that each Farmer does not pay the
Provider and instead, invests in an alternative water source
that is privately owned. Farmers then take water from this
private alternative water source to grow crop. This choice is
denoted as ALT.
3. • Although each tubewell is privately owned, all
tubewells draw water from a single “shared”
underground water source. This is like Farmers
using tubewells that are connected to one large
bucket of water.
• In each round, the amount of water available from
this shared underground source is finite and as
more Farmers decide to use privately-owned
tubewells, the amount of water available per
Farmer becomes less because of its limited
amount.
• Therefore, the outcome of choice ALT is influenced
by the decisions of other Farmers.
New 3rd option for Farmers: Alternative
4. PETITION
Provider
Repair &
maintain
Irrigation
Infrastructure
(Public)
• Second, there is a new fourth option available to Farmers:
• The FOURTH option is that Farmers PETITION the Provider to
improve the infrastructure while still paying 10 tokens to the
Provider to take water. However, note that:
A Farmer will bear some cost if he/she chooses to
PETITION—2 tokens will be deducted from his/her
earnings.
The Provider's earnings will be deducted by 5 tokens for
each PETITION that he/she has to deal with.
PETITION
Farmers
Provider
Take water
to grow crop
Irrigation
Infrastructure
(Public)
New 4th option for Farmers: Petition
5. What are Farmer’s decision options and earning outcomes?
• At the beginning of each round, each Farmer is endowed with 10 tokens.
• Each Farmer then decides what to do with this endowment between four options: HOLD, PAY, ALT, and PETITION.
• If a Farmer decides to HOLD 10 tokens and do not pay to the Provider, the Farmer will just earn 10 tokens.
• If a Farmer decides to PAY 10 tokens, then there are two possible outcomes.
1) When the irrigation infrastructure is fully functional, the Farmer will earn 15 tokens.
2) Otherwise, when the irrigation infrastructure is minimal functional, the Farmer will earn 5 tokens.
• If a Farmer chooses the ALT and does not pay to the Provider, then there are three possible outcomes.
1) The Farmer will earn 13 tokens if 1 out of 3 Farmers selects ALT.
2) The Farmer will earn 11 tokens if 2 out of 3 Farmers select ALT.
3) The Farmer will earn 9 tokens if all Farmers (3 out of 3 Farmers) select ALT.
• If a Farmer decides to PETITION the Provider, then there are two possible outcomes. Note that PETITION not only costs the Farmer 2 tokens,
but also deducts 5 tokens from the Provider.
1) When the irrigation infrastructure is fully functional, the Farmer will earn 13 tokens.
2) Otherwise, when the irrigation infrastructure is minimal functional, the Farmer will earn 3 tokens.
6. What are Provider’s decision options and earning outcomes?
• The Provider has the same options as the previous rounds (KEEP and INVEST). However, the Provider’s tokens will be deducted by 5 tokens
when a Farmer chooses PETITION. For example, if two Farmers PETITION, the total deduction will be 10 tokens.
• If the Provider decides to KEEP, the Provider will earn the remaining tokens after the deduction by PETITIONS (for each PETITION, 5 tokens are
deducted).
• If the Provider decides to INVEST, the Provider will earn the remaining tokens after BOTH investment cost (15 tokens) and the deduction by
PETITIONS (for each PETITION, 5 tokens are deducted).
Note
• It costs the Provider 15 tokens to make the needed investment to the irrigation infrastructure in each round.
• The Provider’s earnings cannot be less than zero in this exercise.
Example
• Suppose that 2 Farmers choose PETITION and 1 Farmer chooses PAY. Then, the Provider receives 30 tokens from three Farmers. If the Provider
decides to INVEST, the Provider has 15 tokens after investment. Because 2 Farmers PETITON, 10 tokens will be additionally deducted from the
amount (15 tokens) that the Provider has after the investment. Thus, the Provider will earn 5 tokens (see the right box).
Provider
INVEST
KEEP
Receive tokens
Farmers
Decision Earning
All received tokens – 5 tokens multiplied by # of PETITIONs
All received tokens – Investment (15 tokens) – 5 tokens multiplied by # of PETITIONs
30 tokens (2 Farmers PETITION & 1 Farmer PAY)
– 15 tokens (Investment)
– 10 tokens (Two PETITIONs)
5 tokens (Provider’s earning)
Example
7. Next, you will take a short quiz.
After that, you and 3 other players will play the second set of rounds.
Editor's Notes
The second set of rounds is identical to the previous rounds except one change – there is a third option for farmers.
The first option is that farmers pay their 10 tokens and then take water from the public irrigation infrastructure to grow crop.
The second option is that farmers hold payment and just keep their 10 tokens.
The THIRD option is that each farmers petition the provider to improve the infrastructure while still paying 10 tokens to the provider to take water. However, note that a farmer will bear some cost if he/she chooses to petition. 2 tokens will be deducted from his/her earnings. The provider’s earnings will be deducted by 5 tokens for each petition that it has to deal with.
More specifically, at the beginning of each round, each farmer is endowed with 10 tokens.
Each farmer then decides what to do with this endowment between three options: HOLD, PAY, and PETITION.
If a Farmer decides to HOLD 10 tokens and do not pay, the Farmer will just earn 10 tokens.
If a Farmer decides to PAY 10 tokens, then there are two possible outcomes.
When the irrigation infrastructure is fully functional, the Farmer will earn 15 tokens.
Otherwise, when the irrigation infrastructure is minimal functional, the farmer will earn 5 tokens.
If a Farmer decides to PETITION the Provider, then there are two possible outcomes. Note that a PETITION not only costs the farmer 2 tokens, but also deducts 5 tokens from the Provider.
When the irrigation is fully functional, the Farmer will earn 13 tokens.
Otherwise, when the irrigation infrastructure is minimal functional, the farmer will earn 3 tokens.
Provider has the same options as the previous rounds (KEEP and INVEST). However, the provider’s tokens will be deducted by 5 tokens when a farmer chooses PETITION. For example, if two farmers PETITION, the total deduction will be 10 tokens.
If the Provider decides to KEEP, the Provider will earn the tokens remaining after the collected tokens are deducted by PETITIONS (for each PETITION, 5 tokens are deducted).
If the Provider decides to INVEST, the Provider will earn the tokens remaining after the collected tokens are deducted by BOTH investment cost (15 tokens) and PETITIONS (for each PETITION, 5 tokens are deducted).
Note
It costs the provider 15 tokens to make the needed investment to the irrigation infrastructure in each round.
The Provider’s earnings cannot be less than zero in this experiment.
Example
Suppose that 2 farmers choose PETITION and 1 farmer chooses PAY. Then, the Provider receives 30 tokens from the three farmers. If the Provider decides to INVEST, the provider has 15 tokens after investment. Because 2 farmers PETITON, 10 tokens will be deducted from the amount (15 tokens) that the provider has after investment. Thus, the Provider will earn 5 tokens (=15-5*2).