Essay

Modifying an Experimental Design to Test a New Hypothesis

Consider the design of an economic experiment where anonymous four-person groups play for ten rounds. In each round, every participant is given $20 and can contribute to a shared fund. For every dollar contributed, each of the four members receives a $0.40 benefit. After each round, players are informed of the contributions made by others.

Propose a single, specific modification to this experimental design to test the hypothesis that allowing communication between players before each round increases cooperation. Explain how your proposed modification would work and why it would effectively test the hypothesis.

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Updated 2025-08-01

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Introduction to Microeconomics Course

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