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Instructions


Your bonus payment is based on decisions in one round

  • There will be 5 rounds of the investment task.
  • At the end, one round will be selected to be the "round that counts".
  • Your decisions in the round that counts, and only in that round, will be implemented to determine your bonus payment.
  • Since any round could be the round that counts, you should behave in each round as if it is the round that counts.

Instructions


The investment task

  • In each round, you will buy risky investments in up to two different accounts.
  • Each account has separate budget and each investment generates returns depending on a roll of six-sided dice.
  • You have a separate budget for each account that can be spent only in that account. These budgets are denominated in Experimental Currency Units (ECUs) that have no value outside of the experiment.
  • The dice will be rolled once, and you receive the returns from all your investments in all accounts in that round.

Instructions


Example of how to calculate your bonus payment

  • Suppose that in the round-that-counts you have two accounts.
  • You have 20 ECU available in Account 1, which has two investments available; each investment costs 1 ECU per unit.
  • One unit in Asset A pays:
    • $0.40 if the dice roll is 1, 2, or 3;
    • $0.10 if the dice roll is 4, 5, or 6.
  • One unit in Asset B pays:
    • $0.25 if the dice roll is 1, 2, or 3;
    • $0.25 if the dice roll is 4, 5, or 6.

  • You have 15 ECU available in Account 2, which has two investments available; each investment costs 1 ECU per unit.
  • One unit in Asset C pays:
    • $0.60 if the dice roll is 1 or 2;
    • $0.00 if the dice roll is 3, 4, 5, or 6.
  • One unit in Asset D pays:
    • $0.30 if the dice roll is 1 or 2;
    • $0.30 if the dice roll is 3, 4, 5, or 6.

  • Suppose that
    • In Account 1: you allocate 5 ECU to Asset A and 15 ECU to Asset B;
    • In Account 2: you allocate 8 ECU to Asset C and 7 ECU to Asset D.
  • Then, if the dice roll is 2, you will be paid:
    • 5 × $0.40 + 15 × $0.25 + 8 × $0.60 + 7 × $0.30 = $12.65.

Instructions


Round

    {{ if participant.tab == 0 }}
  • For each round, the top of the page will outline the number of available accounts.
  • The box for an account indicates the available assets, how much each asset pays for each possible dice roll, and the budget for that account.
  • {{ else }}
  • For each round, the top of the page will outline the number of available accounts. Use the tabs on the screen to access each account in that round.
  • The tab for an account indicates the available assets, how much each asset pays for each possible dice roll, and the budget for that account.
  • {{ endif }}
  • In each account, move the slider to select your preferred allocation between the available assets. You can choose any combination that the slider allows.
  • {{ if participant.treatment == 3 or participant.treatment == 4 }}
  • If a round has two accounts, you should first examine both accounts, then purchase your investments.
  • {{ endif}}

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