Structure of the block
- In this block there are two active players: First Mover and Second Mover.
- In this block you will face 32 rounds:
- 16 assuming the role of First Mover, and,
- 16 assuming the role of Second Mover.
- Each round is independent of other rounds when assuming the role of First Mover or Second Mover.
- Each round is equally likely to be selected for your payment.
- Thus, it is important for you to take each round seriously.
Structure of the round
- There are two active players in each round, where
- First Mover:
- moves first
- chooses A or B
- Second Mover:
- moves after knowing the choice of First Mover, then
- decides to choose A or B
- The table below provides an example of the payoff structure depending on the decisions of First Mover and Second Mover:
| |
First Mover payment |
Second Mover payment |
First Mover choice |
A |
Second Mover choice |
A |
350 tokens |
400 tokens |
| B |
150 tokens |
500 tokens |
| B |
Second Mover choice |
A |
550 tokens |
180 tokens |
| B |
320 tokens |
200 tokens |
- That is, if First Mover chooses:
- A, then if Second Mover chooses:
- A, then First Mover will earn 350 tokens and Second Mover will earn 400 tokens;
- B, then First Mover will earn 150 tokens and Second Mover will earn 500 tokens.
- B, then if Second Mover chooses:
- A, then First Mover will earn 550 tokens and Second Mover will earn 180 tokens;
- B, then First Mover will earn 320 tokens and Second Mover will earn 200 tokens.
Decision of First Mover
- As First Mover you need to take a decision of A or B
- You will be presented with the following interface:
- In each round, once you made a decision you can proceed to the next round.
Decision of Second Mover
- As Second Mover you need to take two decisions,
- Choose A or B given First Mover has chosen A
- Choose A or B given First Mover has chosen B
- You will be presented with the following interface:
- That is, you need to take two decisions:
- Choose A or B if First Mover chose A (the Yellow row)
- Choose A or B if First Mover chose B (the Gray row)
- Note that both decisions are important because until the end of the experiment you do not know what First Mover will choose.
- In each round, once you made your decisions you can proceed to the next round.
Payment
Your payment in Block 2 is determined as follows.
- You are randomly,
- matched with the other participant in the room.
- assigned a role: First Mover or Second Mover.
- One of the rounds will be randomly selected for payment.
- The decision you and the other participant made will be implemented (in the corresponding roles) and thus the payoff will be determined. Two examples should make this clear.
- Example 1. Assume that the computer randomly selects you to be First Mover. This implies that your payoff relevant decision will be your First Mover’s decision. Assume that you choose A as the First Mover’s decision in the above example screen (Decision of First Mover). Assume that the other participant matched with you makes the following Second Mover’s decisions: he/she chooses A if you choose A, and chooses B if you choose B. As a consequence, you will earn 350 Tokens and the other participant will earn 400 Tokens.
- Example 2. Assume that the computer randomly selects the other participant to be the First Mover. This implies that your payoff relevant decision will be your Second Mover’s decision. Assume that you make the following Second Mover’s decisions: you choose B if the First Mover chooses A, and choose B if the First Mover chooses B in the above example screen (Decision of Second Mover). Assume that the other participant matched with you chooses A as the First Mover’s decision. As a consequence, you will earn 500 Tokens and the other participant will earn 150 Tokens.
- You will only see outcomes at the end of the experiment.
- Your payment: 1 token = 1 penny