Costs and Benefits in the Four-Farmer Irrigation Project Game

The Irrigation Game as a Multi-Player Prisoners' Dilemma

Conflict Between Collective and Individual Interests in the Irrigation Game

Four farmers share access to a water source. They are independently deciding whether to contribute a fixed amount of money to build a shared irrigation system. Each contribution is costly to the individual who makes it, but for every contribution made, all four farmers (including those who do not contribute) receive an equal increase in their crop yield. From the perspective of a single farmer focused on maximizing their own personal outcome, which statement best explains the strategic dilemma they face?

Conflict of Interest in a Shared Resource Scenario

The Farmer's Decision

Analyzing the Free-Rider Incentive

In a scenario where four farmers independently decide whether to contribute to a shared irrigation system, and each contribution benefits all farmers regardless of who pays, the most likely outcome is that all four will contribute because this action maximizes the total benefit for the group as a whole.

In a scenario where several farmers must independently decide whether to contribute to a shared irrigation system, match each element of the situation to its correct economic description.

Modifying Incentives in a Collective Project

Imagine a scenario where four farmers must independently decide whether to contribute to a shared irrigation system. The system is costly for each farmer who contributes, but every contribution benefits all four farmers equally, including those who do not pay. Which of the following statements best analyzes why the group is likely to end up with a less-than-ideal outcome for everyone?

Analyzing Strategic Interdependence in a Collective Project

In a strategic interaction where several farmers must independently decide whether to contribute to a shared irrigation system, the incentive for a farmer to benefit from the system without paying the cost is known as the ________ problem.

Design of a Worldwide Public Good Game Experiment

Free-Riding in a Public Irrigation Project