{% extends "global/Page.html" %} {% load otree %} {% block title %}Part II{% endblock %} {% block content %}
Below you see a lottery table. For each row in the lottery table, you are asked to choose between option A and option B. There are 10 rows in the table so, in this part, you will make a total of 10 decisions (1 decision for each row):
Option A | Option B |
---|---|
1/10 of €2, 9/10 of €1.60 | 1/10 of €3.85, 9/10 of €0.10 |
2/10 of €2, 8/10 of €1.60 | 2/10 of €3.85, 8/10 of €0.10 |
3/10 of €2, 7/10 of €1.60 | 3/10 of €3.85, 7/10 of €0.10 |
4/10 of €2, 6/10 of €1.60 | 4/10 of €3.85, 6/10 of €0.10 |
5/10 of €2, 5/10 of €1.60 | 5/10 of €3.85, 5/10 of €0.10 |
6/10 of €2, 4/10 of €1.60 | 6/10 of €3.85, 4/10 of €0.10 |
7/10 of €2, 3/10 of €1.60 | 7/10 of €3.85, 3/10 of €0.10 |
8/10 of €2, 2/10 of €1.60 | 8/10 of €3.85, 2/10 of €0.10 |
9/10 of €2, 1/10 of €1.60 | 9/10 of €3.85, 1/10 of €0.10 |
10/10 of €2, 0/10 of €1.60 | 10/10 of €3.85, 0/10 of €0.10 |
For example, consider the first row of the table. Assume that there are 10 balls in an urn: 1 black ball and 9 white balls. So 1/10 indicates that 1 of the 10 balls is black; 9/10 indicates that 9 of the 10 balls are white. You make a random draw from the urn. In the case of option A, if you pick the black ball, you will earn €2, and if you pick a white ball, you will earn €1.60. In the case of option B, if you pick the black ball, you will earn €3.85, and if you pick a white ball, you will earn €0.10.
After you have made all your decisions, the computer will pick one of the rows randomly and play the chosen lottery. The computer is equally likely to choose each row in the table. Let’s say that it randomly chooses the first row and for the first row you chose option B rather than option A. The computer will play out option B. That is to say, the computer will draw a ball randomly from an urn in which there are 1 black ball and 9 white balls. If it draws the black ball, you will earn €3.85, and if it draws a white ball, you will earn €0.10.
The monetary payoff that you will earn from this lottery will be added to your payoff from the Part I and to the show-up fee of €2.5. This will be your total payoff.
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