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Instructions for the Game

Welcome to game. Your decisions in this game will determine your earnings, which can be converted into a real monetary bonus. The bonus conversion rate is 100 points = $1.00 or ¢100 (cents) rounded to tenths. Please take your time to read and understand the instructions and questions. The speed at which you complete the forms will not influence your payments.

In this game, there are two distinct roles: Player A and Player B. The game consists of two sequential phases. In Phase 1, Player A establishes the percentage of Player B's production that will be transferred to them. In Phase 2, Player B decides how much to produce.

Phase 1: Player A chooses the tax amount

In Phase 1: Player A selects a percentage between 0% and 100%. This percentage determines the portion of Player B's production to be transferred to Player A. After Player A's decision, Phase 2 commences.

Phase 2: Player B decides how much to produce

In Phase 2: Player B decides how much to produce within a range of 0 to 100 points. To produce, Player B moves the sliders. Player B can decide not to produce at all or to stop producing at any time.
After Phase 2, the earnings will be calculated and announced based on the decisions made by both Player A and Player B. Any fractions in the shares will be rounded up to the nearest whole number with priority for Player A.

Example of payoff determination

Let's assume that in Phase 1: Player A chose 60% as the tax.
And in Phase 2: Player B produced 50 points.

The experiment is for academic research only. All participants in this experiment will remain anonymous. Roles are randomly assigned. After the game a short survey will be provided.

Clicking on the “Next” button signifies your informed consent to proceed.

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