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1. Instructions for
the 2nd set of rounds

2. What’s new? The 3rd option for Users – PETITION
• The second set of rounds is identical to the previous rounds
except for ONE change – there is a third option for Users.
• Now, the THIRD option is that each User can PETITION the
Provider to improve the system performance while still paying
10 tokens to the Provider to use its service.
• However, note that PETITION is costly to both User and Provider.
• For the Users, PETITION is costly because they have to
spend their time and energy to do this.
• If a User chooses to PETITION, 2 tokens will be
deducted from his or her earnings.
• For the Provider, PETITION by a User is also costly because
the Provider has to spend time and energy to handle or
respond to PETITION.
• The Provider's earnings will be deducted by 5 tokens for
each PETITION that it has to deal with.

3. Summary: User’s decision options & earning outcomes
• Now, each User can decide what to do with the endowment among three options: EXIT, PAY, and PETITION.
• Basically, earnings from EXIT and PAY are calculated in the same way as before.
• Let’s see how a User’s earning is calculated when the User chooses the third option, PETITION.
• If a User chooses to PETITION, then it will cost him or her 2 tokens.
But note that by doing so, it will also cost the Provider 5 tokens.
• If a User decides to PETITION the Provider, then there are two possible outcomes.
1) When the Provider chooses INVESTS 15 tokens AND two or more Users choose PAY or PETITION, the system
performance will vary between 60% and 100%. When this happens, the earnings will
fluctuate between 5 tokens and 13 tokens because of 2 tokens are deducted for making PETITION.
2) Otherwise, the system performance is 50% or below and the earnings will be 3 tokens
because of 2 tokens are deducted for the same reason.

4. Summary: Provider’s decision options & earning outcomes
• The Provider has the same options as the previous rounds: INVEST 5 tokens and INVEST 15 tokens.
• However, unlike the previous rounds, the Provider’s earnings will be deducted by 5 tokens for each User choosing PETITION.
• If the Provider decides to INVEST 5 tokens, the Provider will earn the tokens remaining after the collected tokens are deducted
by BOTH 5 tokens investment cost and PETITIONS.
• If the Provider decides to INVEST 15 tokens , the Provider will earn the tokens remaining after the collected tokens are
deducted by BOTH 15 tokens investment cost and PETITIONS.
• Note that the Provider’s earnings can NOT be less than zero in this experiment.
Example
• Suppose that 2 Users choose PETITION and 1 User chooses PAY. Then, the Provider receives 30 tokens from three Users. If the
Provider decides to INVEST 15 tokens, the Provider has 15 tokens remaining after the investment cost. However, because 2
Users chose PETITON, 10 tokens will be further deducted from the Provider’s earnings. Thus, the Provider will earn 5 tokens.
30 tokens (2 Users PETITION & 1 User PAY)
– 15 tokens (INVEST 15 tokens)
– 10 tokens (Two PETITIONs)
5 tokens (Provider’s earning)
Example

5. Next, you and 3 other players will play the second set of rounds.