{{ block title }}Willingness to Pay to Apply Participant 2's Strategy{{ endblock }} {{ block content }}

The computer will select the Yellow Box with a 50% probability and generates a sample of {{C.N_size}} marbles. However, in this Section, you will not observe the sample for free. You have to decide how much you are willing to pay so that Participant 2's strategy reported in Section 1 can be applied to the sample generated from the Selected Box. Notice that a sample can be informative of the actual Box selected.

How is your purchase determined?

You will participate in an auction against the computer to purchase the right to observe the sample generated. You have to make a bet that represents your willingness to pay.

An amount of $X between $0.00 and ${{C.Bet_Limit}}0 will be randomly chosen by the computer. $X can take any value between $0.00 and ${{C.Bet_Limit}}0 with the same probability. Then two cases can occur concerning your bet:

  1. If your willingness to pay is larger or equal to $X, you will pay $X to observe the sample. Notice that $X cannot be larger than your bet in this case.
  2. If your willingness to pay is smaller than $X, you pay nothing, and no sample is shown.

Notice that if the sample does not increase your chances of selecting the correct Box and making ${{C.Prize}}, you should bet $0.00. And if the sample increases your chances, you should increase your bet. You will increase your expected payoffs if you report how much extra money you expect to make if Participant 2's strategy in Section 1 is applied to the sample observed.

Remember that you and Participant 2 will be paid ${{C.Prize}} if Participant 2's decision about the Box selected by the computer is correct.

Please answer the following questions:

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