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 one number to the mechanism. If the two requests are jointly feasible, the mechanism makes a recommendation based on both requests and the remaining points.
The exact formula is not disclosed. If the total request is above 100, the mechanism recommends bargaining breakdown.
You can accept or reject the recommendation by the mechanism. If you or your opponent rejects it, bargaining breaks down.
You have to submit your number to the mechanism within the limited time; otherwise, you will receive your outside option as your payoff.
If agreement is reached: Earnings = number of points you receive in the agreement.
If no agreement is reached: Earnings = your outside option.
One round will be randomly selected for payment at the end. Each ECU earned equals 0.03 pounds.