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Thank you for taking part in this experiment.
The purpose of this experiment is purely academic and this is to study how people make decisions on average in a given situation. You are playing a game for real money that you will take home. Feel free to ask us questions after reading the instructions. However, if at any time you find that this is something that you do not wish to participate in for any reason, you are of course free to leave.
To ensure anonymity and confidentiality you are assigned a random internal code. You have been paired with another participant, and you will play with this same participant during the whole experiment. However, you are not be able to talk to each other, neither to know his or her identity and vice-versa.
To begin with, you will be randomly assigned by the computer as Player A or as Player B. The role assigned to you will be the same for you along the experiment. The experiment consists of 2 phases. The first phase will have 10 rounds and we will give your more details of the other phase afterwards.
Phase 1:
Player A and player B will be assigned an endowment of 10 points at the beginning of each round. Player A will have the opportunity to send to the paired player B some, all or none of his or her endowment. Each point sent to Player B will be tripled (x3). For example, if player A sends 2 points to B, B will receive 6 points. The points sent by player A will be subtracted from the total endowment of points received earlier. Player B will then decide how many points to send back to A, keeping the remainder. The amount sent back by player B will not be tripled.
Consequently, after this previous transaction, the payoffs of each player in each round will be the quantity of points remain in their hands. At the end of each round, each player of your pair will be informed about the decisions and the payoffs of the other player in the pair.