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Situation Description

In a study conducted at the economic laboratory, two participants, Person A and Person B, are randomly paired. The pairing is anonymous, meaning that neither participant will know the identity of the other participant with whom he or she is paired.

In the experiment, Person A will make a choice, the experimenter will record this choice, and then both Person A and Person B will be informed of the choice and paid money based on the choice made by Person A. Additionally, both will receive a small participation fee. Suppose that neither Person A nor Person B will receive any other money for participating in the experiment.

The experiment consists of two stages. In the first stage, only Person B participates in a task for 30 minutes. Person A does not have the opportunity to participate in this task. When Person B participates in this stage, he/she does not know about the existence of the second stage.

In the task of the first stage, Person B is presented with several tables containing only 1s and 0s. Person B has to indicate the number of 0s in each table. An example of a table is provided below.


Person B earns 0.50€ for each correct answer he/she provides. This task has a total duration of 30 minutes. At the end of this task, Person B has correctly indicated the number of 0s in 20 tables. Therefore, Person B has earned (20 x 0.50€ =) 10€.

In the second stage, Person A has the opportunity to give any amount of the 10€ earned by Person B to Person B. That is, Person A can give any of the 10€, in 1€ increments, to Person B. For instance, Person A may decide to give 0€ to Person B and keep 10€ for him or herself. Or Person A may decide to give 10€ to Person B and keep 0€ for him or herself. Person A may also choose to give any other amount between 0€ and 10€ to Person B, in 1€ increments. This choice will determine how much money each will receive, privately and in cash, at the end of the experiment.

You can find an overview of the possible actions and the corresponding earnings here:

Before you evaluate the actions of Person A please answer the following comprehension questions:

{% formfield player.EarnR1 %} {% formfield player.EarnR2 %} {% formfield player.EarnR3 %}

                                                                                                                                                                                                                                                                               

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