1) Farmers now have three options - PAY, HOLD, or PETITION. PAY and HOLD have the same outcomes as before. PETITION costs the farmer 2 tokens but deducts 5 from the provider if infrastructure is improved. 2) There is now a 60 second group chat at the start for farmers and provider to discuss the exercise within limits. 3) The provider's options remain KEEP or INVEST. Each PETITION deducts 5 tokens from the provider's earnings after collecting tokens from farmers and making infrastructure investments.

1. Instructions for
the 2nd set of rounds

2. What’s new. 1) New option for farmers—Petition
PETITION
Farmers
Provider
Repair &
maintain
Take water
to grow crop
Irrigation
Infrastructure
(Public)
• The second set of rounds is identical to the previous rounds
except for TWO changes – First, there is a new option for farmers.
• Three options are now 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 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.

3. What’s new. 2) Text-based communication in a chatroom
• The second new is a group chat.
• Three Farmers and the Provider are allowed to communicate with each
other in a text-based chatroom.
 When and how long? 60 seconds at the BEGINNING of each round
 How? You can send text messages to the other participants
 What can be discussed? Any aspect of the exercise with two
important exceptions:
1) You are NOT allowed to promise the other participants side-
payments or threaten them with any consequence after the
experiment is finished.
2) You are NOT allowed to reveal your real identity.
• Note
 Group chat does NOT affect both the Farmers' and the Provider's
earnings. Your earnings are determined ONLY by what three Farmers
and the Provider choose among their available options.
Farmers
Provider
Repair &
maintain
Take water
to grow crop
Irrigation
Infrastructure
(Public)

4. Farmer
Endowed with 10 tokens
(each round)
HOLD
PAY
Decision Earning
10 tokens
15 tokens,
if the infrastructure is FULLY functional
5 tokens,
if the infrastructure is MINIMALLY functional
What are Farmer’s decision options and earning outcomes?
• 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.
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 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.
1) When the irrigation is fully functional, the Farmer will earn 13 tokens.
2) Otherwise, when the irrigation infrastructure is minimal functional, the farmer will earn 3 tokens.
PETITION
13 tokens,
if the infrastructure is FULLY functional
3 tokens,
if the infrastructure is MINIMALLY functional

5. What are Provider’s decision options and earning outcomes?
• 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 additionally deducted from the amount (15 tokens) that the Provider has after 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)

6. Next, you will take a short quiz.
After that, you and 3 other players will play the second set of rounds.