In Stage 2, all pairings have the same task and payment arrangements. But all pairings consist of two participants from different companies in Stage 1.
Stage 2 begins with the Sender being given 3000 Lira.
The Sender can give as much, or as little, of that 3000 Lira to the Responder as they choose and keep the rest of the 3000 Lira to themselves. That is, the Sender can give anything between 0 and 3000 Lira to the Responder. Any amount given to the Responder will be multiplied by 3 and create a funding pool for the Responder.
The Responder can return as much, or as little, as they choose. That is, the Responder can return anything from 0 to 3 times the amount given by the Sender back to the Sender.
The formulas below summarize how Stage 2 payoff is calculated:
Payoff (Responder) = (Amount sent by the Sender x 3) – Amount returned by Responder
Stage 2 will last for only one period. While you will not learn the identity of the Responder if you are the Sender or of the Sender if you are the Responder, you will be told what type of company (in terms of individual bonuses described earlier) the other participant worked for in Stage 1.
After the next quiz, you will be informed whether you are randomly assigned the role of the Sender or Responder, what type of company (in terms of individual bonuses) the other participant worked for in Stage 1, and then you will make the decision for Stage 2.
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