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This is an example of the Blue Choice Task. In this task, you must choose between Bag A and Bag B. If you were to choose Bag A, then you would earn an additional payment if blue was drawn from Bag A. If you were to choose Bag B, then you would earn an additional payment if blue was drawn from Bag B. The picture has been provided to remind you of the contents of each bag.
Which one do you prefer?
Bag A: You win $5.00 if the implementer draws a blue chip from Bag A, and $0 otherwise.
Bag B: You win $5.20 if the implementer draws a blue chip from Bag B, and $0 otherwise.
In the example, you need to choose between Bag A and Bag B. The two options have the same winning color but differ in the amount you can win and the bag that counts for payment. This is called the Blue Choice Task because, for either option, you win if blue is drawn from the bag.
During the experiment, there will also be a Red Choice Task. The only difference in the Red Choice Task is that the winning color is red instead of blue.
Recall that only one of the two choice tasks will be relevant for your payment. This will be determined by the flip of a coin, which will occur after all decisions have been made and after the implementer has drawn one chip from each bag.
In this experiment, you will make two decisions.
• Firstly, you will decide whether you prefer Bag A or Bag B in the Blue Choice Task.
• Secondly, you will decide whether you prefer Bag A or Bag B in the Red Choice Task.