The experiment takes place over 10 periods: this means that you will be asked to make {{C.NUM_ROUNDS}} consecutive decisions. At the end of each period, you will be given the information you need to calculate your gain (relative to the period that has just ended).
The decision you will be asked to make in each period will always be the same: you will have to choose a whole number (which we will denote by X) from 1 to 7 that will help determine your earnings per period. However, the latter will also depend on the number chosen by the other participants as follows:
earnings per period = 0.20 ∙ min(X) - 0.1 ∙ X + 0.60
where min(X) represents the lowest number that has been chosen (given all participants) and X is the number chosen by you.
From this gain-determining function you can see that the smaller the number you choose, the smaller the factor 0.1∙X which negatively affects your gain. At the same time, however, the smaller the value of 0.20∙min(X) which has a positive effect on your gain may be. Remember, however, that 0.20∙min(X) depends on your choices as it depends on the lowest number that has been chosen by at least one participant (it could be you, but it could also be another participant).
To better clarify the structure of possible earnings, the following table is provided.
For each period, we will ask you to state your choice. After everyone indicates their choices, we will communicate to you the lowest number that was chosen in the period (we will not disclose in any way who chose it). From this and your choice, you will be able to calculate your earnings for that period. To make this easier for you, we will share with you a table with your choice, the lowest number communicated to you by the experimenter and your earnings.