Instructions

Part IV

This part of the experiment will consist of two rounds.

There will be two types of people, Red and Blue. You will be a Red person in one round and a Blue person in the other round (in no particular order).

In each round you will be randomly paired with a person of the other type. In this experiment you will interact with two other people.

Instructions for Blue People

A Blue person begins each round with 100 points. A Blue person may choose to send some, all, or none of these points to the Red person he/she is paired with by typing the amount into a box in the center of the screen and then clicking “Next”.

• Any points that a Blue person sends to a Red person will be subtracted from the Blue person's account, multiplied by 3 and transferred to the Red person.
• Any points that a Blue person chooses not to send to the Red person remain the Blue person's earnings.
• Only Blue people will be able to send points and have them multiplied.

Instructions for Red People

A Red person enters a round with 100 points. After the Blue person makes a decision, the Red person will see how many points were sent from the Blue person.

• The amount sent by the Blue person will be multiplied by 3 and added to the Red person's account.
• Then the Red person decides to send some, all or none of these points to the Blue person by typing the amount into a box in the center of the screen and then clicking “Next”.
• Only Red people will make this decision.

In each round, each Red person is paired with the same Blue person for the entire round. (One “round” consists of one Blue person deciding how many points to send to one Red person and that Red person deciding how many of the multiplied points to send to the paired Blue person.)

Summary

A Blue person's earnings for a round are: Earnings = Starting points minus Amount Sent to Red plus Amount Received from Red

A Red person's earnings for a round are: Earnings = Starting points plus Amount Received from Blue x 3 minus Amount Sent to Blue

Both the Blue and the Red people will be informed of the outcome at the end of the experiment.