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Your chances to make up to $9 extra in this section are best if you report your actual belief that the Yellow box is selected and your actual belief about Participant 2's beliefs on the same event.
For each possible sample, your report determines the chances of getting $1.50. This applies both to your own estimate and your estimate of the other person’s estimate. You will be making decisions in three independent tasks, and therefore you can make up to $3 x 3 = $9.
A detailed explanation of how you increase your chances of making up to $9 extra by reporting your true beliefs will be shown when you click the 'View Payoff Details' button. Feel free to read the details of the payment method.
In every task, the computer will select a Box, generate a sample of 4 marbles, and implement your guess about the probability of the Yellow Box selected (p) to calculate your payoffs. An independent Box and sample will be selected for Participant 2, who chooses the strategy q. Remember you also have to report your guess about q, and let's call it r. These two guesses you make (p and r) determine the probability of making up to $3 in each task:
Guess on the box selected by the computer: p (your report divided by 100)
For every possible sample, indicate a probability p between 0 and 1 that you believe the Yellow box was selected. If the computer selects the Yellow Box, you will make $1.50 with probability (1 - (1-p)2). If the computer selects the Green Box, you will make $1.50 with probability (1- p2). This is also shown below:
Selected Box | Probability of winning |
---|---|
Yellow Box | 1 - (1-p)2 |
Green Box | 1- p2 |
Here are some examples of how the payment works:
Guess on Participant 2’s guess: r (your report divided by 100)
Participant 2 will also bet on the probability that a Yellow box was selected for them by reporting the number q. You will indicate a probability r between 0 and 1 that is your guess about q. You will make $1.5 with probability:
You would wish to choose r to be as close as possible to q. Participant 2 will have the same payment scheme as you do in your first guess above. Here are some examples of how the payment works:
These bets were designed such that reporting your beliefs truthfully maximizes your chances of getting up to $9 in this section. Be as accurate as possible, and carefully consider the probability of the Yellow Box selected given each sample, and what Participant 2 would choose.
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