Summary

You'll be in groups of 10 and play 10 rounds. You'll be randomly matched with someone each round. Each round has 100 objects. You'll bargain to split them. You have an outside option randomly chosen 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 mechanism suggests breakdown of bargaining.

After the numbers are revised, mechanism recalculates suggestions using the same formulas. If [a1 + a2 > 100] again: bargaining fails.

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 1 minute, otherwise your payoff will be zero.

Earnings are calculated based on the number of objects you agree on

Earnings = Number of objects

One round will be randomly selected for payment at the end. Each ECU earned equals 0.05 pounds.