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This Experiment

This is an experiment about decision making. The game has 10 rounds.

During each of these rounds you will be asked to make decision about how to allocate a set of points. You and the other subjects will be randomly assigned into groups and you will not be told each others’ identities.

There will be three people in your group – you and two others.

In each period you will have seven (7) points to allocate. You can allocate these points in either a WHITE investment or a RED investment.

The amount of points you earn depends upon how many points you decide to invest in the WHITE investment or the RED investment, as well as how many points others decide to invest in the WHITE investment or the RED investment.

In each decision you make, points allocated in the WHITE investment and in the RED investment will pay an amount that depends on the number of points invested in the two investments by you and the other members of group. The cost depends on how many choose the WHITE investment or the RED investment.

WHITE investment pays a lower amount and the cost due to the group choice is smaller, instead RED investment pays a higher amount but the cost caused by the group's choice is higher.

To summarise:

• In each period, you will have seven (7) points.

• Your task, in each period, is to decide how many of your points to allocate in the WHITE investment and how many to allocate in the RED investment.

• In each period, you will earn depending on how many points you allocate in WHITE investment and in the RED investment

• WHITE investment pays a lower amount but it has a lower group cost, RED investment pays a higher amount but it has a higher group cost.

Privacy and Anonymity

You will never be asked to reveal your identity to anyone during the course of the experiment. Your name will never be associated with any of your decisions. In order to keep your decisions private, please do not reveal your choices to any other participant.

To start, write down here your matricola (serial number) at UNIBO or the same serial number (or code) you inserted in the questionnaire

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