Multiple Choice

In a 10-round experiment, four-person groups are repeatedly given an endowment to invest in a shared project. For every dollar contributed by any member, all four members (including the contributor) receive a return of $0.40. After each round, the contributions of all members are revealed. Experiments consistently show that contributions are high in the first round but steadily decrease in subsequent rounds. Which of the following statements provides the most robust explanation for this decline in cooperation?

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Updated 2025-07-28

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