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Description of the situation


Suppose that two individuals take part in an experiment. Individual A has to make a choice and will be paid money based on the choice (as well as a small participation fee). The other participant, Individual B, may or may not also be paid money based on the choice made by Individual A (as well as a small participation fee). Neither participant will ever know the identity of the other participant.

Individual A will have a choice of whether (option 1) to play a game or (option 2) to not play a game.

Option 1: Individual A chooses to play the game

If Individual A chooses to play the game (option 1), then he or she will be paired with Individual B. The pairing is completely anonymous. Individual A will receive 10 points. One point is worth £0.5, so the 10 points are worth £5. Individual A will have the opportunity to give any amount of his or her 10 points to Individual B. That is, Individual A can give any of the 10 points he or she receives to Individual B.

For instance, Individual A may decide to give 0 points to Individual B and keep 10 points for him or herself. Or Individual A may decide to give 10 points to Individual B and keep 0 points for him or herself. Individual A may also choose to give any other amount between 0 and 10 points to Individual B. Individual B will receive any points that Individual A gave to Individual B.

Importantly, Individual B will never find out about the game and about how much money (points) Individual A decided to give to him/her. Thus, in case that individual A decided to give something to Individual B, Individual B will only be informed that the money (points) comes from an experiment on prolific, without further details.

Option 2: Individual A decides not to play the game

If Individual A decides to not play the game, then he or she will receive 10 points. One point is worth £0.5, so the 10 points are worth £5. The two participants will not be paired, Individual B will not find out anything about the game and Individual A's decision and will not receive any additional money.

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