Instructions used in the fixed pairings treatment

Overview

This is an experiment in decision-making. The National Science Foundation has provided funds for this research. During the course of the experiment, you will be called upon to make a series of decisions. If you follow the instructions carefully and make good decisions, you can earn a considerable amount of money which will be paid to you in cash at the end of the experiment. We ask that you not talk with one another for the duration of the experiment.

Specifics

The experiment is divided into a series of games. A game will consist of an indefinite number of rounds. At the beginning of each game you will be paired with someone else in this room. You will be paired with this player for one game. In each round both of you will play the game described in the upper center portion of your screen. In this game each of you can make either of two choices, X or Y. The points you earn in a round depends upon both the choice you make and the choice made by the other person with whom you are matched. As the payoff table on your screen indicates:

If both of you choose X this round then: you both earn 20 points.

If you choose X this round and the other person chooses Y then: you earn 0 points and the other person earns 30 points.

If you choose Y this round and the other person chooses X then: you earn 30 points and the other person earns 0 points.

If you both choose Y this round then: you both earn 10 points.

To make your choice in each round, click the radio button next to either X or Y. You may change your mind any time prior to clicking the submit button by simply clicking on the button next to X or Y. You are free to choose X or Y in every round. When you are satisfied with your choice, click on the submit button. The computer program will record your choice and the choice made by the player with whom you are matched. After all players have made their choices, the results of the round will appear on the lower portion of your screen. You will be reminded of your own choice and will be shown the choice of the player with whom you are matched as well as the number of points you have earned for the round. Record the results of the round on your RECORD SHEET under the appropriate headings.

Immediately after you have received information on your choice and the choice of the person with whom you are matched for a given round, the computer program will randomly select a number from 1 to 100. The selected number will appear on a popup box in the middle of your screen. If this random number is less than 91, the game will continue into the next round. If the number selected is greater than 90 the game is over. Therefore, after each round there is a 90% chance that you will play another round with the same individual and a 10% chance that the game will end.

Suppose that a number less than 91 has been drawn. Then you click on the OK button, eliminating the popup box, and the next round is played. You will play the same game with the same individual as in the previous rounds Before making you choice, you may review all the outcomes of all of the prior games in the sequence by scrolling down the history record. You then choose either X or Y. Your choice and the choice of the person with whom you are matched are recorded and added to the history record at the lower portion of your screen. You record the outcome and your point earnings for the round. The computer then randomly selects a number between 1 and 100 to determine whether the game continues for another round.

If the number drawn is greater than 90 then the game ends. The experimenter will announce whether or not a new game will be played. If a new game is to be played then you will be matched with someone different from those you have been matched with in prior games. You will be matched with that person for all rounds in the new game.

Earnings

Each point that you earn is worth 1 cent ( $.01). Therefore, the more points you earn the more money you earn. You will be paid your earnings from all rounds played today in cash, and in private, at the end of today’s session.

Final Comments

First, do not discuss your choices or your results with anyone at any time during the experiment.

Second, your ID# is private. Do not reveal it to anyone.

Third, remember that you are paired with the same individual for the entire sequence of rounds in a given game. Since there is a 90% chance that at the end of a round the sequence will continue, you can expect, on average, to play 10 rounds with the same individual. However, since the stopping decision is made randomly, some sequences may be much longer than 10 rounds and others may be much shorter.

Questions?

Now is the time for questions. Does anyone have any questions before we begin?