Duration
This experiment will last for one period.
Roles
You will be randomly matched with another participant to form a group of two. You can have one of two roles as a participant: Player 1 or Player 2. The roles are randomly assigned, and each participant has an equal chance of being assigned either role.
Types:
Player 2 has a type that affects how earnings are determined. Hence, Player 2’s earnings are affected by their type, their decision and the decision of Player 1. This type is private information. Player 2 will know their own type, while Player 1 will not know Player 2’s type.
Sequence
1) Decision of Player 1
First, Player 1 chooses a number X between 0 and 10. Then, one of two things will happen: the world will be RED with a probability X/10, or the world will be BLUE with (1-X/10) probability.
So for example, if Player 1 chooses 2, then the world is RED with a probability 2/10 and with a probability 8/10 (i.e. 1-2/10) the world is BLUE.
Player 1 sees whether the world is RED or BLUE. After seeing this, Player 1 decides whether to disclose the world's colour to Player 2.
2) Decision of Player 2
Player 2 sees Player 1’s choice (X) and whether Player 1 chooses to disclose the world's colour. Player 2 then chooses between two choices, A and B.
Earnings:
If Player 2 is Type I, the earnings for the different possible outcomes are as follows. All earnings are given in points.
This is also illustrated using the table below
| A | B | |
|---|---|---|
| RED | 30-X, 23 | 40-X, 30 |
| BLUE | 10-X, 43 | 40-X, 40 |
If Player 2 is Type I, the earnings for the different possible outcomes are as follows. All earnings are given in points.
This is also illustrated using the table below
| A | B | |
|---|---|---|
| RED | 30-X, 28 | 40-X, 30 |
| BLUE | 10-X, 48 | 40-X, 40 |
If Player 2 is Type II, the payoffs for the different possible outcomes are as follows.
This is also illustrated using the table below
| A | B | |
|---|---|---|
| RED | 30-X, 14 | 40-X, 10 |
| BLUE | 10-X, 34 | 40-X, 40 |
You have been assigned the role of Player 2, and your type is Type I.
{{ else }}You have been assigned the role of Player 2, and your type is Type II.
{{ endif }} {{ if player.choice2 == '2' }}Player 1 has chosen X = {{ player.choice1 }} and not to disclose the world's colour.
{{ elif player.choice2 == '1' and player.state == 'RED' }}Player 1 has chosen X = {{ player.choice1 }} and to disclose the world's colour. The world is : RED.
{{ elif player.choice2 == '1' and player.state == 'BLUE' }}Player 1 has chosen X = {{ player.choice1 }} and to disclose the world's colour. The world is : BLUE.
{{ endif }}{{ formfield player.choice3 }}