Multiple Choice

In a multi-round experiment, a group of individuals can anonymously contribute money from a personal endowment to a common pool. The total in the pool is then multiplied and distributed equally among all participants, regardless of their individual contribution. In the first round, the average contribution is relatively high. Before the second round, all participants are shown the individual contribution levels from the first round, revealing that several individuals contributed nothing. What is the most likely change in the average contribution for the second round, and what does this suggest about pure, unconditional altruism as the sole motivator?

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Updated 2025-07-24

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Introduction to Microeconomics Course

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