A farmer named Maria is deciding whether to help build a shared irrigation ditch. The personal cost for any farmer who contributes is $10. For each farmer who contributes, every farmer in the community gets an $8 benefit in increased crop yields. Maria knows that two other farmers have already contributed. To maximize her own personal payoff, what should Maria do?

Analyzing Historical Economic Arguments

Irrigation Project Payoff Decision

Irrigation Project Payoff Decision

In a community irrigation project where the personal cost to contribute is $10 and each contribution provides an $8 benefit to every farmer, an individual farmer's personal payoff is always maximized by contributing, regardless of how many others have already contributed.

Calculating Payoffs in a Public Goods Game

Payoff Calculation in a Public Goods Scenario

A farmer is part of a community irrigation project where the personal cost to contribute is $10, and each contribution provides an $8 benefit to every farmer in the community. If this farmer decides to contribute, knowing that two other farmers have already done so, their personal net payoff will be $____.

A farmer is deciding whether to contribute to a shared irrigation project. The personal cost to contribute is $10. For each person who contributes (including the farmer themselves), every farmer in the community receives an $8 benefit. Given that two other farmers have already contributed, match the farmer's potential action with their resulting personal payoff.

Individual vs. Group Incentives in a Shared Project