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Please answer below the comprehension questions about this task.
You will not be able to proceed until you answer all of them correctly.
If you find any difficulties answering the questions please refer back to the instructions located below the “next” button.
If you have any questions or doubts, please raise your hand.
For this part of the experiment you will be paired with one random participant in this lab session. In particular, each one of you two will be making two similar decisions which may or may not affect each other.
Depending on your rank in the distribution of performances, you will receive one feedback (that is, one piece of information) about your rank. You can receive three types of feedback in the form of evaluations:
The figure below shows you the exact three possible evaluations that you can receive.
Which feedback you receive depends on your actual rank in the distribution in the quiz and the evaluation system from which the feedback is generated.
In particular, there are two possible evaluation systems and you will have to choose from which evaluation system you want to receive feedback about your performance.
Why it matters?Following the feedback, we will ask you to state again your belief about the probability with which you think that you are in the top half of the distribution and your answer to this question will be paid for. Thus, the feedback you receive can help you in answering that question and, thus, in increasing your payments in case that question is randomly selected for payments.
The different components of the evaluation systems are as follows:
1. Precision of evaluationYou will always receive your feedback with some probability of error. This probability of error depends on the precision of the evaluation system. In particular, the precision of the Public evaluation system is 90%, while that of the Private evaluation system is 60%. This means that the information regarding your rank that you receive from the Public evaluation system is correct 90% of the times, while it is correct 60% of times for the private evaluation system.
To better understand how the precision works, please refer to the picture below. If you are in the top half and you choose the public evaluation system, then you will receive the green (correct) evaluation 9 out of 10 times. Similarly, if you are in the bottom half, you will receive the red (correct) evaluation 9 out of 10 times. Thus, in each case you will get the wrong evaluation 1 out of 10 times. If you instead choose the private evaluation system and you are in the top half then you will receive the green (correct) evaluation 6 out of 10 times. Similarly, if you are in the bottom half, you will receive the red (correct) evaluation 6 out of 10 times. Thus, in each case you will get the wrong evaluation 4 out of 10 times.
In the Public evaluation system your evaluation will also be shown to the participant you are paired with in this task. That is, if you get a green evaluation, your partner will also get to see this evaluation about your performance. Similarly, if you get a red evaluation, your partner will get to see it too. In the private evaluation system, instead, the evaluation will be privately communicated to you. Therefore, the participant you are paired with will not get to see your evaluation. In fact, regardless of the evaluation that you receive, he/she will see the following picture:
Importantly, while you are making all these choices, the participant you are matched with will be making the same choices. Thus, if he/she chooses the Public evaluation system, then you will get to see his/her evaluation. If, instead, he/she opts for the Private evaluation system, then you will not see his/her feedback.
In sum, the Public evaluation system is more informative about your actual performance than the Private evaluation system since it has higher precision. Also, in contrast to the Private evaluation system, your paired participant gets to see your feedback in the public evaluation system (i.e., the evaluation you receive).
Similarly, the chosen evaluation system by your partner will determine whether you see his/her feedback.