A third treatment involves assigning asymmetric license values to each team in order to simulate that some investors may be more efficient at providing the licensed service than others. A fourth treatment involves the instructor as an auctioneer using the English auction mechanism to allocate the license. The winner of the auction must pay the final bid and the losers do not pay anything. Illustrates the conflict between private and social incentives in providing public goods. Each red card the student keeps generates four dollars in personal earnings.
Students also earn one dollar for each red card that is played by the entire class.
Thus, playing a red card is equivalent to contributing to the provision of a public good. After the instructor collects two cards from each student, the number of red cards is tallied and student earnings determined. The cards are returned to the students and a new decision round begins. Large classes can simply use a subset of students. You will need one deck of playing cards for every 13 students.