Structure of the block
- You will face 14 rounds in this block.
- Each round is independent of other rounds.
- 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
- In each round there are two players: First Mover and Second Mover.
- First Mover is the only active player.
- First Mover decides what action to take: A or B.
- First Mover’s decision determines the payment for both First Mover and Second Mover.
- An example below illustrates the payment structure:
- In this example, if First Mover decides:
- A, then First Mover will earn 400 tokens and Second Mover will earn 350 tokens
- B, then First Mover will earn 500 tokens and Second Mover will earn 150 tokens.
- In each round, once you made a decision you can proceed to the next round.
- In each round you will be presented with the new payment structure within the same decision problem:
- The only decision is done by First Mover picking A or B.
- Payments corresponding to each of actions vary.
Payment
Your payment in Block 1 is determined as follows.
- One of the rounds will be randomly selected for your payment.
- You are randomly matched with the other participant in this room.
- You are randomly assigned a role: First Mover or Second Mover.
- The decision of First Mover is implemented.
- You will only see outcomes at the end of the experiment.
- Your payment: 1 token = 1 penny