{% extends "global/Page.html" %} {% load otree static %} {% block title %} Part 1: Instructions (1/3)
{% endblock %} {% block content %} Please read these instructions carefully. If you correctly answer three qualification questions and complete this study you will additionally receive a fixed bonus of $1.50.

In this study, there are various lotteries with different probabilities of winning. To illustrate this probability of winning, we will use the metaphor of colored balls in a bag. Imagine that there is a bag that contains 100 balls. Each of these balls has one of the following {% player.choices_first %} colors:

The computer selects one of the 100 balls at random, where each ball is equally likely to get selected. Across lotteries, the number of balls of a given color might vary. An example lottery is:

{% for c in player.colors_first %} {% if c == 'red' %}73{% elif player.choices_first == 2 %}27{% else %}3{% endif %} out of 100 balls are {{ c }}. If one is drawn: Get ${% if c == 'red' %}18{% else %}0{% endif %}.

{% endfor %}


IMPORTANT: Red will always be the only winning color.
{% if player.choices_first == 2 %}Blue does not wing you anything.{% else %} The other colors do not win you anything.{% endif %}



You will always know how many balls of a given color are contained in the bag before making your decision. The lotteries will actually be played out by the computer and determine your earnings in exactly the way we describe on the following pages.


Decision screen 1

You will be asked to choose which of two payment options you prefer: a lottery or a payment that you would receive with certainty. For the lottery displayed above, for example, you would be asked the following list of questions:

Question # Option A Option B
1 Would you rather have:
{% for c in player.colors_first %} {% if c == 'red' %}73{% elif player.choices_first == 2 %}27{% else %}3{% endif %} out of 100 balls are {{ c }}.
If one is drawn: Get ${% if c == 'red' %}18{% else %}0{% endif %}.

{% endfor %}
or $0.01 with certainty
2 Would you rather have: or $0.02 with certainty
3 Would you rather have: or $0.03 with certainty
... ... ... ...
1,799 Would you rather have: or $17.99 with certainty
1,800 Would you rather have: or $18.00 with certainty

In each question you pick either Option A (the lottery) or Option B (the certain payment). We will randomly pick one question and pay you according to what you chose on that one question. Each question is equally likely to be chosen for payment.

We assume that you prefer the lottery (Option A) when the certain payment in Option B is very small, but that you switch to preferring Option B when the certain payment is very large. Therefore, to save time, we will not actually ask you 1,800 questions. Instead, we will simply ask you to state the amount at which you would switch from Option A to B in the table. This is the same as asking you:

Which certain payment is worth as much to you as this lottery?

Based on your response to this question, we can then fill out your answers to all 1,800 questions in the list. That is, you will choose Option A for all questions with a lower certain payment than your response, and Option B for all questions with a certain payment that is at least as high as your response.

Example: Suppose you were to tell us that a given lottery is worth as much to you as a certain payment of $12. Then this would mean that you prefer the lottery over any certain payment that is smaller than $12. On the other hand, it would also mean that you prefer any certain payment greater than $12 over the lottery.

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