In this part of the experiment, consisting of 3 rounds, you will be presented with a lottery for which you can decide how you want to have the uncertainty resolved. To explain, say you have three cards displayed face up on your computer screen each with a different prize. A prize is again some amount of money. Your prize in any round will be determined by which card remains after two of the three cards are eliminated. The question for you is how you want these two cards to be removed. You will have three options.
Basically, we are asking you to decide whether you want to determine your payoff by a three-card lottery right now or a two cards lottery a little later after one card is removed.
Consider the following example: You have a lottery with amounts ₵30, ₵40, and ₵50. Your payment will be determined by the card that remains last in this round.
If you choose "Remove two cards at once", two cards will be randomly removed and you will immediately learn your final outcome in this round. In this example, ₵30 and ₵40 are removed, therefore, ₵50 is your final outcome.
If you choose "Remove one card first", a single card will be randomly removed and you will have your payoff determined by a two-cards lottery. In this example, the ₵40 is removed and now you have a two-cards lottery with ₵30 and ₵50 remaining on your screen.
After seeing that the ₵40 card is removed, you will have to wait some time before the next card can be removed. If then, for instance, ₵30 is removed next, you will get ₵50 as a final outcome.
The labels of the cards will differ in every round The experiment will start with two rounds of demonstration. These first two rounds will not count toward your payoff in the experiment, so you should try out different choices to fully understand your options.
The trial rounds are followed by a total of 3 rounds, in which you will have to make a choice for different sets of cards.
In these 3 rounds you will make all your relevant choices without receiving any feedback. That means, at the beginning of a round you will see all three cards and you will have to choose between your three options defining how you want the uncertainty resolved. You will not immediately learn the outcome. Instead, your choice will be implemented at the end of the experiment where one round out of the 3 will be randomly selected to be played out. At that point you will see the cards removed according to the option you chose for that round.
The one round that is selected to be played out will also determine your final payment. Note that each of the 3 payoff-relevant rounds has the same, positive chance of might being selected for payment. You should therefore think carefully about your choice in each round.
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