Instructions

In this game, you will participate in a series of auctions in groups of 2. In each auction, you will bid on a fictitious item, which has some value to you. This value will be different for different participants, as described below. In each round, each group member will simultaneously submit a bid. The person with the highest bid wins and earns their value. Additionally, the winner must pay a price for the item equal to their own bid.

The winner’s payoff is equal to their value minus their bid. The payoff of those who do not win is zero.

You will play the game for five periods and each person’s value will be randomly de- termined each period. Specifically, each person’s value is between 0 and 1, with any value in this interval being equally likely. At the beginning of each round, you will learn your own value but not those of the other bidder.