- Instead of directly choosing your actions during each round of the game, you and your counterpart will each choose a rule ahead of time.
- Instead of directly choosing your actions during each round of the game, you and your counterpart will each choose a rule ahead of time to determine what actions the computer will take on your behalf during the game.
- Before each game begins you will see a rules table like the one below. The rules table will show (as rows, in purple) two rules for you to choose between. It will also show (as columns, in orange) the same two rules that your counterpart will also, simultaneously choose between. You will not each get to see what the other chooses.
- The rules are exactly like the rules from Part 1: they specify what actions you will take, based on the actions your counterpart took in previous rounds. In fact, the rules you choose between will be taken from the rules from Part 1.
- At the top of the screen, we will also show you the payment table (like the one below) for the game to remind you of how much each combination of your and your counterpart's actions pays each round.
- After you have both chosen your rules, the computer will pay you the amount you would earn on average if you and your counterpart followed the chosen rules in millions of games (each game has a random length), given the numbers in the payment table. Thus, the computer will pay you each the average amount you can expect to earn in a game, given the rules each of you has chosen and the numbers in the payment table.
- This may sound complicated, but what it means for you is actually relatively simple. When selecting a rule, you should think about how much following the rule would earn you 'on average' (over all of the possible games with random lengths) given the numbers in the Payoff Table and the rule you think your counterpart is likely to choose.
- Inside the rules table we show you and your counterpart question marks (?) representing the amount each combination of rules pays each of you on average -- the question marks mean, we will not tell you what these average payments are. But there are determinate amounts you will each earn for each of these combinations of rules. That is, your rule choice and your counterpart's rule choices will jointly impact how much you earn in the game and it is up to you to determine which rule is a better choice.
- Inside the rules table we show you what these average total earnings are, for every combination of (i) your rule choice (rows, in purple) and (ii) your counterpart's rule choice (columns, in orange). As with the payoff table, the first number in each cell of the table shows your payment (in purple) and the second shows your counterpart's payment (in orange). Your counterpart will see the exact same information as she makes her choice.
- Example: In the example above, if you chose the rule "Always choose A" and your counterpart "In rounds 1, 2 and 3 choose B. After round 3: choose A if your counterpart chose A in all of the previous 3 rounds; otherwise choose B.", you would earn 186 and your counterpart 120. However, if you chose "In rounds 1, 2 and 3 choose B. After round 3: choose A if your counterpart chose A in all of the previous 3 rounds; otherwise choose B." and your counterpart "Always choose A", you would earn 120 and your counterpart 186.
- Example: In the example above, if you chose "Rule 1" and your counterpart "Rule 2", you would earn 186 and your counterpart 120. However, if you chose "Rule 2" and your counterpart "Rule 1", you would earn 120 and your counterpart 186.
- Example: In the example above, if you chose the rule "Always choose A" and your counterpart "In round 1 choose B. After round 1: choose whatever your counterpart chose last round.", you would earn 150 and your counterpart 113. However, if you chose "In round 1 choose B. After round 1: choose whatever your counterpart chose last round." and your counterpart "Always choose A", you would earn 113 and your counterpart 150.
- Example: In the example above, if you chose "Rule 1" and your counterpart "Rule 2", you would earn 150 and your counterpart 113. However, if you chose "Rule 2" and your counterpart "Rule 1", you would earn 113 and your counterpart 150.
Part 2: Choosing a Rule
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Rules Table:
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Payment Table:
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Comprehension Questions
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