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Please wait for everyone to finish reading the instructions. The experimenter will read out a summary of the instructions once everyone is ready.


Summary:

  • The experiment consists of three stages. In Stage 1, you will make 3 investment decisions relating to money you will earn for yourself in Stage 3. In each decision, you will decide how to allocate the money between a risky and a safe option. One of the 3 decisions you make will be randomly selected and your payment will be determined accordingly.

  • In Stage 2, you will be part of a group of four. Each group will have a leader. The computer will randomly select one participant to be the leader. However, you can indicate it if you have a desire to take the leader position. Then, at the leadership selection stage, the computer will randomly select a leader amongst those participants who express a desire to take the leader position.

  • The leader’s role is to make 3 investment decisions related to the money the charity may receive from the group.

  • In Stage 3, the participants will work on a counting tables activity. Each participant will earn a fixed amount of $10 for himself/herself as long as s/he finishes 10 tables correctly, and zero otherwise.

  • After the first 10 correctly completed tables, each participant can also work on additional tables. Working on additional tables is optional. Each group member can work on up to 20 additional tables if s/he wants. Each additional table completed correctly will generate an income of $0.15 (15 cents).

  • In each group, the income generated from these additional counting tasks by the group members will be donated to a charity randomly determined by the computer. One of the 3 investment decisions made by the leader will be randomly selected and the total amount received by the charity will be determined accordingly. The additional tables will not affect the payments received by the group members.
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