For the following decision situation, a new participant of the experiment is assigned to you at random. You and this other person make different decisions, which then result in your payout and the payout of the other person for part 2 of the experiment. You are confronted with a decision situation in which there are two roles (A and B). You and the other person must make a decision for both roles.
Role A: The person in role A is given 10 points and decides first.
Role B: The person in role B does NOT receive any points and decides second. The person in role B observes the decision of the person in role A before making the own decision.
The person in role A has the following two options:
Option 1: You keep your 10 points for yourself
Option 2: You give your 10 points to the other person. The 10 points are then tripled, i.e. the other person receives 30 points.
The person in role B is informed whether the other player has kept or sent the 10 points.
The person in role B must then decide how many of the points now available to him/her will be returned to the person in role A.
Depending on the decision made by the person in role A,
the person in role B can either return 0 points (if person A chose option 1),
or return up to 30 points (if person A chose option 2).
The person in role B can select any integer between 0 and the maximum number of points at their disposal.
Person in role A:
The total number of points of the person in role A is made up of the number of points they have kept for themselves plus the number of points returned by B.
Example 1: Player A chooses to send 10 points, player B returns 15 points. Number of points of A = 15
Example 2: Player A chooses to send 0 points. Hence, player B cannot return points. Number of points of A = 10
Person in role B:
The total number of points of the person in role B is equal to the tripled number of points sent by the person in role A, minus the number of points sent back to the person in role A.
Example 1: Player A chooses to send 10 points, player B returns 15 points. Number of points of B = 15
Example 2: Player A chooses to send 0 points. Hence, player B cannot return points. Number of points of B = 0
You will have to make a decision for both roles.
It is determined randomly and with equal probability whether your decision in role A or B is relevant for you and in what order they appear.
The other role is relevant for the person assigned to you. For each point you earn, you will be paid 25 euro cents.