What You Know

In this part of this experiment you will each guess which of two possible urns was randomly selected by the computer. You will also be assigned a random, anonymous partner who is doing the same task. There are two possible urns: Urn A and Urn B. Both urns contain a set amount of balls and the computer selected an urn for each group before the experiment started. It is equally likely for either urn to be selected, like the toss of a coin. You will each get one piece of information to help you make your prediction. You will privately observe one random draw of a ball from the chosen urn. All balls are equally likely to be drawn and are drawn by the computer for each person. The ball compositions in each urn are displayed below.

Determining Your Payoff

Your earnings for this part are determined by an investment decision you will make before you watch the ball get drawn. Each of you have been given {{ Constants.endowment }} tokens to invest. You can either keep all the tokens (to invest in yourself) or you can invest up to all {{ Constants.endowment }} tokens in your partner. Your partner was only determined by a random draw and the numbers you picked when you entered the room. You will earn money from all the tokens invested in someone who guesses the urn correctly.

We are still using experimental dollars, which will be exchanged at the end of the experiment at a rate of 4 experimental dollars = 1 U.S. dollar. Each token invested in a correct guess pays 1 experimental dollar. Tokens invested in someone who incorrectly guesses the chosen urn pay 0 experimental dollars. For example:

• If you do not invest any tokens in your partner, and you correctly guess the chosen urn you receive 10 experimental dollars. If you guess the chosen urn incorrectly you receive 0 experimental dollars.
• If you invest all 10 tokens in your partner, and they correctly guess the chosen urn you receive 10 experimental dollars. If they guess the chosen urn incorrectly you receive 0 experimental dollars.
• If you invest 6 tokens in your partner (leaving 4 tokens invested in yourself) you receive 6 experimental dollars if they guess correctly. You receive an additional 4 experimental dollars if you guess correctly, regardless of your partner's guess.

You will find out the results from this part of the experiment at the end of the experiment session.