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Role of leader:

The leader’s role is to choose between two lotteries. Each lottery is associated with two outcomes and each outcome is equally likely to occur.

Lottery 1 yields a payoff of either $0.05 or $0.45 for each correctly completed table.

Lottery 2 yields a payoff of $0.20 or $0.30 for each correctly completed table.

The outcomes of each lottery will be determined by the computer. The leader’s choice and the outcome of the chosen lottery will determine how much money the charity will receive from each correctly completed table by the group.

For example, if the leader chooses Lottery 1 and the outcome of this lottery is $0.45, then each additional table completed by the group will raise $0.45 for the charity. If the outcome is $0.05, then amount raised by each additional table will be $0.05.


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