Summary

You'll be in groups of 4 and play 4 rounds. In each round, you are randomly matched with another participant and bargain over how to split 100 points. At the start of each round, the computer randomly assigns you an outside option between 0 and 100.

You submit desired numbers of object to the mechanism, and the mechanism determines the suggested split using the following formula. a1 and a2 are requested numbers by player 1 and player 2, respectively:

• If [a1 + a2 ≤ 100], then player 1 is offered [A1 = a1 + (100 - a1 - a2) / 2], player 2 is offered [A2 = a2 + (100 - a1 - a2) / 2].
• If [a1 + a2 > 100], then bargaining breaks down.
However, if the initial bids do not result in a settlement, the system may, in limited circumstances, generate a neutral settlement suggestion to help close the remaining gap. Any such suggestion may differ from either party’s stated amount.

You can accept or reject suggestions by the mechanism. If you or your opponent rejects a suggestion, then breakdown of bargaining occurs.

You have to submit your numbers to the mechanism within the limited time; otherwise, you will receive your outside option as your payoff.

Earnings are calculated based on the number of points you agree on.

One round will be randomly selected for payment at the end. Each ECU earned equals 0.03 pounds.