Alright, well let's, let's, let's see, let's see what you guys are, let's, let's
play another round. Let's start with you, Austin, in the
middle, and then we go this way and this way.
>> Alright. >> Are sure you're going this way?
>> Yeah, just put in my out. Yeah, that's good.
>> [music] that was I think that was in. Let me count again.
That was seven. $7.00, so more contributions to the, so
let's see, so seven. And now I'm going to be a little, sneaky
here. So since you didn't contribute anything,
right, you have seven, and ... >> Did you have to point it out?
That's right, wait a sec. What you contribute, two?
So you, you get $7 only. >> Yeah.
You get, you kept one red, one black card. And you get one.
Huh? >> I did one of each.
One of each, right. So you kept, if you kept the black card
then you if you got two black cards you get seven if you get the red cards then
you get a little more. >> Wait so if you put down two red cards,
what would you get? If you put two red cards then you get $7.
Alright. But if you kept the red cards you get $7
plus the two red cards you have that will be $15.
>> No matter what you get $7. >> No matter what you get the $7
[inaudible] so if you keep the[INAUDIBLE] red cards,[INAUDIBLE]?
>> That's it, if you kept the two red cards, you got four for each.
$8. Yeah.
Plus the seven cards that you, you always, you always get the public money no matter
if you contributed or not. Alright?
Let's play another round, and then I'm going to, I'm going to change something
else here. Let's play another round and see if I.
Are these yours? >> Yeah.
>> Are you going to play those? >> I think I am.
>> Alright. That's five.
We got five this time. $5 in the public account.
[music] Alright, so pick up your cards so now let me let me try to do it a little,
well actually, before I do it a little differently let me ask you guys.
So what, have you guys been using any particular strategy?
Austin, what are you doing? >> I always put a red in You always put a
red in and keep one for yourself? >> Yeah Ok.
Alright, why are you doing that? >> Because you get more money from the
public than you do from yourself. >> Ok so you're kind of half-contributing
and half-- ok, is anyone doing anything particularly different?
What are you doing Wesley? ..
Tommy's just being a horrible meanie right?
>> [laugh] Well, but the thing is that if you keep your red cards, then you get the
benefit offered everyone, right? So it's, you know, in a way, there's
really no, very little incentive to give a red card.
So why don't we do it now publicly, right? >> So I want you to put the 2 cards Show
him what you're doing. So you're going to show everyone what
you're doing. Right?
And then put your cards ... >> [laugh].
>> Put your two cards, alright? So you cannot put them down you have to
put them facing up. Alright?
Go for it. Alright.
You are one and one. Let's see what you want to do, Wesley,
then. Okay.
>> [laugh] >> Peer pressure worked. Alright.
Alright. So we, you have, look how much we have.
We have one, two, a four, a five, six. This is the most we've had, we have eight.
What do we, so how can we have so much in this, now $8 in the public account?
So public account is actually a, a, a good, contributing to the public account
individually doesn't make a lot of sense. [unknown] Right?
But when you have peer pressure, you might actually make a little more sense.
Okay, so why don't we tally up what you have and let's see who actually end up
with the most. So, what I'm going to do.
I'm going to pick 2 people and then you're going to tell me how much money you made,
and then I'm going to pay you in cash per that.
If we're going to do this, we're going to do it this way.
Kind of randomly, right? We're now seeing.
And it'd probably be fair to say that I will pay you 20% of your earnings,
alright. I will pay you 20%.
Hopefully that won't be more than the money I have.
Alright, so the first person is... Wesley.
[laugh] How much money you make? >> I have 52.
>> Really? Yeah.
>> [inaudible] Alright, so I'll pay you 20% of that.
And the next person, kick Wesley out so you have a higher probability of getting
that money. Gretchen, that's you.
How much money you have? >> 50.
>> 50? Alright.
So that's you. And so I'll pay you 20% of that.
Now let me ask, just have, how much money did you make?
>> 38. >> And how much money you?
>> 44. >> 52.
>> 52. >> 36.
>> 36. Alright.
So you have the, the cooperator here, right?
[laugh] She made a lot more that you have actually, you made a lot more than if you
have actually done Not giving anything, but unfortunately, the people who
contributed nothing, a lot less, and you actually made a lot more.
So this is exactly what happens when we have a public good, right, in which, if,
it's better for everyone to have something like national defense, right.
But, but there's no incentive for me to contribute to have national defense
because if all you guys pay for national defense there's no way for me to not be
benefited by natural defense. So, so the problem with a public good is
that it's a paradox, right? It's better for all of you to cooperate,
but it's better for one person to free rude on all the other ones.
Eventually, you all, we're doing exactly the same thing.
And then this is a segment that will never be provided by the market because everyone
will behave in kind of the same way. Alright.
Okay, so that calls out, we come back after the game to talk a little bit more
about different scenarios of the game and understand a little bit more about public
goods. >> Thank you guys a lot, and I'll pay
your, your earnings after, off camera. ...
>> Produced by OCE Atlas Digital Media at the University of Illinois Urbana-Champain
