{{ block title }} Instructions {{ endblock }} {{ block content }}

This is an experiment in decision-making. You will earn money based on the decisions you and others make in the experiment, and you will be paid at the end of the experiment. Different participants may earn different amounts.

Overview of the experiment

The experiment is divided into four blocks. There are 48 participants. At the start of each block, a computer program will randomly form 6 groups of 8 participants that stay the same throughout that block. Therefore you are likely to interact with different people in different blocks.

What happens in each block?

Each block is a separate section with many periods. In each period, 4 persons in your group are red and the other 4 are blue. Colors are randomly assigned at the start of a block, and then alternate from period to period so that:

In the first period of each block, each red participant is linked with all blue participants in their group. Similarly, each blue participant is linked with all red participants in their group. You can only be linked with participants of a color different than yours. A participant you are linked with is called your “neighbor." {{ if treatment == 2 }}

In the first period of each block, each blue participant has 4 tokens. Red participants have 0 tokens. Tokens cannot be redeemed for points. They cannot be created or destroyed, and can only be transferred from blue to red participants as explained below.

{{ endif }}

Each period has two stages.

We now discuss these two stages in detail.

Stage 1.

Choice of red players.

If you are blue, you have no action to take and you simply wait for your neighbors to make a choice.

{{ if treatment == 0 or treatment == 1 }}

If you are red and you have neighbors, then you must choose either action X or Y. Your action applies to all your neighbors and determines your earnings and the earnings of your neighbors as described in Stage 2, below.

{% else %}

If you are red and you have neighbors, then you must choose either action X , Y, or Z. Your action applies to all your neighbors and determines your earnings and the earnings of your neighbors as described in Stage 2, below.

{{ endif }}

If you are red and you have no neighbors, then you have no action to take.

Stage 2.

Outcome of stage 1.

You see the outcome of stage 1 and learn how many points you earned. Earnings are determined as follows. You start with an endowment of 40 points. If you do not have neighbors, then this endowment is your total earnings for the period. Instead, if you have neighbors, you can earn or lose additional points depending on your color. Specifically:

If you are red and you choose action:

{{ if treatment == 0 or treatment == 1 }}

If you are blue, the points you earn depend on the actions of your neighbors:

{% else %} {{ endif }}

In this example you are red and have three blue neighbors. You chose action Y. As a result, in this period you earn 10 additional points for each neighbor you have. Therefore your total points in this period are:

40 (your endowment) + 10 x 3 (your neighbors) = 70

{{ if treatment == 0 }} {{ elif treatment == 1 }} {{ elif treatment == 2 }}

If you are blue, the points you earn depend on the actions of your neighbors and on whether you have tokens to give them:

{{ endif }}

In the example above, you are blue this period and have three red neighbors. Two of them chose Y, and one chose X. Their actions are reported in the table. Note that you do not see the action of the red participants that are not your neighbors. As a result, in this period you earned the points reported on the table, plus your endowment. Therefore your total points in this period are:

40 (your endowment) -10 x 2 (neighbors who chose Y) + 20 x 1 (neighbor who chose X) = 40

{{ if treatment == 0 }}

If you are blue, you are given the option to cut specific links forever. Your links are reported in the Table. You will not be able to identify your neighbors across periods because their positions in the Table are scrambled. Similarly, your neighbors will not be able to identify you.

{{ elif treatment == 1 }}

If you are blue, you are given the option to cut or suspend specific links forever. Your links are reported in the Table. You will not be able to identify your neighbors across periods because their positions in the Table are scrambled. Similarly, your neighbors will not be able to identify you.

{{ elif treatment == 2 }}

Now we consider cases in which action Z is chosen.

In this example you are red and have four blue neighbors. You chose action Z. Only two of your blue neighbors have a token to give you. As a result, in this period you earn 10 additional points for each neighbor who does not have a token, and 0 additional points from the other two neighbors. In addition you receive two tokens. Therefore your total points in this period are:

40 (your endowment) + 10 x 2 (your neighbors without tokens ) = 60

In the example above, you are blue this period, have one token, and three red neighbors. Two of them chose Z, and one chose Y. Their actions are reported in the table. As a result, you transfer your token to one of the two neighbors that chose Z, selected at random by the computer; as indicated in the Table. Therefore your total points in this period are:

40 (your endowment) - 10 x 1 (neighbor who chose Y) - 10 x 1 (neighbor who chose Z and did not receive a token)+ 20 x 1 (neighbor who chose Z and received a token ) = 40

Choice of blue players.

If you are red, you have no action to take and you simply wait for your neighbors to make a choice.

If you are blue, you are given the option to cut specific links forever. Your links are reported in the Table. You will not be able to identify your neighbors across periods because their positions in the Table are scrambled. Similarly, your neighbors will not be able to identify you.

{{ endif }} {{ if treatment == 0 }}

If you want to maintain all your links, simply click “next” to proceed.

Instead, if you want to cut specific links you have, click on the corresponding button in the Table. You can make a choice for each of your neighbors.

{{ elif treatment == 1 }}

If you want to maintain all your links, simply click “next” to proceed.

Instead, if you want to cut or suspend specific links you have, click on the corresponding button in the Table. You can make a choice for each of your neighbors.

{{ elif treatment == 2 }}

If you want to maintain all your links, simply click “next” to proceed.

Instead, if you want to cut specific links you have, click on the corresponding button in the Table. You can make a choice for each of your neighbors.

{{ endif }}

To confirm your choices you must then click “next.” Once all blue participants have submitted their choices, the period ends and a new period may start.

Duration of a block

Each block has many periods but their number is random. Hence:

Each block will have at least 15 periods. From period 15 on, at the end of each period a computer selects with equal probability a number between 1 and 100. If the number selected is less than or equal to 70, then the block will continue. Otherwise, the block will end. This number is the same for every participant.

So: starting in period 15, the block has always a chance to continue. The results screen will inform you whether the block continues or not: you will see the randomly selected number.

{{ if treatment == 0 or treatment == 1 }}

Note: The number of past periods does not influence the chance that a block will end. In every period, every number between 1 and 100 has an equal chance of being selected. Hence, the chance that a block will end, say, after period 20, is 30%, which is identical to the chance that the block will end after period 15. As soon as a block ends, different groups are formed randomly and a new block starts.

{% else %}

Note: The number of past periods does not influence the chance that a block will end. In every period, every number between 1 and 100 has an equal chance of being selected. Hence, the chance that a block will end, say, after period 20, is 30%, which is identical to the chance that the block will end after period 15. As soon as a block ends, different groups are formed randomly and a new block starts. Your tokens cannot be transferred from one block to the other; at the block they simply disappear.

{{ endif }}

Payments

When the session ends, one of the four blocks completed will be randomly selected. The points you have earned in that block will be converted into dollars: 10 points are worth 15 cents. To choose the block to be paid the computer will draw a number between 1 and 4, at random. Each block is equally likely to be selected. You will be paid via PayPal, in private, at the end of the session.

Click "Next" to proceed.

{{ next_button }} {{ endblock }}