Massimo Motta
The experiment will consist of a series of decision periods. In each period you will be randomly and anonymously matched with another person and depending on the action you choose and the action chosen by the person with whom you are matched you will receive some points. After receiving those points they will be converted into an amount of pesetas which will depend on the number of points you have. We will begin by explaining the conversion of points into pesetas so that you understand the effect of the points obtained in the amount of pesetas earned. After that we will explain the choice of actions in detail so that you understand how to obtain the points.
The experiment will be composed of 30 decision periods. In each period you will be randomly matched with a player of the other type. In this way all pairs will be composed of a type A player and a type B player. The identity of you couple is unknown to you and it changes every period randomly.
Once the period begins each player can choose between two options: 0
and 1. The points obtained will be a function of your choice and the independent
choice of your couple, as indicated in the following example:
Choice of B | |||
0 | 1 | ||
Choice | 0 | 292, 164 | 612, 362 |
of A | 1 | 364, 509 | 367, 346 |
For instance, to know the points you have obtained if you are type A and you choose 0 when the person you are matched with (therefore a type B) chooses 1, you look in the table for the cell corresponding to (A, 0), (B, 1) and you find the number 612. In this same situation your pair obtains 362, as one can see from the same cell (A, 0), (B, 1) of the table. You can find the table for this experiment at the end of these instructions.
Once you decide on your action you should enter you decision in the computer.
Once you and the player you are matched with have taken the decision, the computer will determine the number of points earned, using the corresponding table. The computer will tell you this information.
After that, the computer converts the point into pesetas. Once this is done the computer will tell you this information together with the history of your decisions and those of the player with whom you have been matched.