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The second part of the experiment consists of 2 teams and 20 periods of point allocation tasks within each team. You will start with your team in the anagram task. By the end of every 3 periods, everyone will be given a chance to decide whether they want to stay in their team or switch to the other team. See details below.
Endowment
At the beginning of this part of the experiment, the two teams from the anagram task will be randomly assigned to two endowment ranges of uniformly distributed numbers, [x, y] and [a, b], respectively. For example, Team A will be randomly assigned to the endowment range [x, y] and Team B to the endowment range [a, b], or vice versa. These two ranges are not equal, and one team will receive a better range than the other. Which team receives the better range is randomly chosen at the beginning of the experiment. The endowment range will stay the same for each team for the rest of the experiment.
At the beginning of each period, each participant will then receive a number, called an endowment, that is randomly chosen from their team’s endowment range. Note all numbers in their assigned range have equal probabilities to be chosen. Although the endowment you receive may vary across periods, everyone within your team will receive their endowments within the same respective range that has been assigned to the team.
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