Instructions

You have been randomly and anonymously paired with another participant. Each of you will represent a firm. Both firms manufacture the same product.

The two of you decide sequentially how many units to manufacture. One of you will decide first. The other will be informed of the units produced by the first one and then decide the units for herself/himself. You will learn the order prior to making any decision.

Your choices can be any number from 0 to {{ C.MAX_UNITS_PER_PLAYER }}. All produced units will be sold, but the more is produced, the lower the unit selling price will be.

The unit selling price is:

Unit selling price = {{ C.TOTAL_CAPACITY }} – Units produced by your firm – Units produced by the other firm

Your profit, also measured in points, is therefore:

Your profit = Unit selling price × Units produced by your firm

For your convenience, these instructions will remain available to you on all subsequent screens of this study.