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Part 3

Course of the experiment

In part 3 of the experiment you will interact with the same opponent as in parts 1 and 2. The outcome of this part will be paid out in cash. Please read the instructions carefully.

We will give you an endowment of 100 tokens (1 token is equal to 1 pence, so 100 tokens are worth £1). You can decide how many tokens you want to invest in a contest for a prize of 200 tokens (equivalent to £2). The prize will be split proportionally to your investment and your opponent's investment. Your share of the prize is calculated as follows:


The more you invest, the higher the share of the prize you will get. If both of you invest 0, you both receive 100 tokens. Let’s illustrate how the prize is calculated on a few examples:


Your earnings equal to the number of tokens you did not invest and your prize:


How much do you want to invest?

0

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