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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:
If both of you invest the same, you and your opponent will each receive 100 tokens.
If you invest 0 and your opponent invests any positive amount, you will receive nothing and your opponent will receive the whole prize.
If you invest one third of your opponent's investment, you will receive 50 tokens and your opponent will receive 150 tokens.
If you invest half of what your opponent invests, you will receive 67 tokens and your opponent 133 tokens.
Your earnings equal to the number of tokens you did not invest and your prize: