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<p>In this experiment, you will play the first-price auctions in <b>groups of 4 </b> for several periods. You will be assigned randomly to a group for the experiment.</p>

<p> Before the period starts each player observes the private value which is derived from the uniform distribution between 0 and 100, U[0, 100]. So, each player receives a number that is her private valuation of the prize, these numbers differ between players but they come from the same distribution. Also, at the beginning of the expetiment, you have an endowment equal to 100, so you can make a non-negative bid that is not greater than 100.</p>

<p> After receiving a private valuation and entering a bid, the game follows the rule of the first-price auction: a winner is a person who proposes a higher bid. She or he pays the bid and receives a pay off which equals the (private valuation - bid). Those who do not win receive 0. After the experiment, we would pay participants participation credits according to their eqrnings after the experiment. 100 points are equal to 0.1 participation credits (1% of your total grade for this course), so you will have so you will have 0.1 point for the participation itsef as was announced and min((total payoff - 100)/1000, 0.1) for extra earnings. For instanse, if you earn 50 points above the endowment, then you will receive 0.05 participation credits.  </p>

<p>  Please, do not communicate with your classmates during the experiment. If you will come up with any questions during the experiment, ask them privately in Zoom chat Anastasia Nebolsina or Svyatoslav Filatov. </p>

<p> Good luck! </p>
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