1
2
9
11
14 𝐿𝐸𝑅𝑡= 0, 𝑤ℎ𝑒𝑛 𝑡 ∈ [0,1] 𝐿𝐸𝑅𝑡= 1 − # 𝑅𝑜𝑢𝑛𝑑𝑠 𝑡𝑜 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑡− # 𝑜𝑓 𝑅𝑜𝑢𝑛𝑑𝑠 𝑡𝑜 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑡−1 # 𝑜𝑓 𝑅𝑜𝑢𝑛𝑑𝑠 𝑡𝑜 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑡−1 ; 𝑤ℎ𝑒𝑛 𝑡 = 2 𝐿𝐸𝑅𝑡= 1 − # 𝑅𝑜𝑢𝑛𝑑𝑠 𝑡𝑜 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑡− # 𝑜𝑓 𝑅𝑜𝑢𝑛𝑑𝑠 𝑡𝑜 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑡−1 # 𝑜𝑓 𝑅𝑜𝑢𝑛𝑑𝑠 𝑡𝑜 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑡−1− # 𝑜𝑓 𝑅𝑜𝑢𝑛𝑑𝑠 𝑡𝑜 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑡−2 ; 𝑤ℎ𝑒𝑛 𝑡 ∈ [3 ≤ 𝑡 ≤ 20]
16
23
25 Instructions for the experiment
Introduction
Welcome to this experiment on decision making. We will first go through the instructions together. Then we will ask you to answer some questions to check your understanding of the task and, answer any questions you may have. Afterwards the experiment will start. Talking is strictly forbidden during the experiment. If you have a question, please raise your hand.
The experiment will last about 40 minutes. If you follow the instructions carefully you can earn some money. During the experiment your earnings will be denoted in points. Your total earnings will be the sum of all points you earn over all periods. After the experiment your earnings will be converted into money at a rate of 1 point is 1.25 Eurocents. Your earnings will be paid to you, privately and in cash, immediately after the experiment.
Instructions
In this experiment, you will be given a label as player M, player T, player G, or player P. Your player label is randomly determined at the beginning of the experiment and stays the same throughout the whole experiment. These labels have no meaning and therefore no relation to the actions you will take in the experiment. In this experiment, you will be in a group. Your group consists of the four people sitting around the table, and remains the same throughout the experiment
The experiment consists of 20 periods. You face the same task for all the 20 periods. The task involves making a decision about whether to nominate a player in your group. In every period, you and every other member of your group will decide individually and privately whether to nominate a group member or nominate no one.
In front of you, you can find four cards: Three of the cards have the other players’ labels and one card has a dash sign (-) printed on it. If you decide to nominate another player, you have to select the card with that player’s label. If you decide not to nominate another player, you have to select the card that has the dash sign.
In each period, you will be given 60 seconds to make a decision privately. To make sure that you make your decision privately, the experimenter will ask you to sit facing away from the table. When you make your decision, please put down the card you chose on your lap, blank side facing up. Once the experimenter confirms that everyone in the group have made their decision, the experimenter will indicate that you can stand up, turn around and show your decision to the rest of the persons in your group. Please hold the card in front of you for 15 seconds so everybody can see it. Everyone in your group will show their decisions simultaneously. During this 15 seconds, the experimenter will note down the decisions. . After 15 seconds have passed, the experimenter will indicate that you can put down your decision card, and return to your seat. Afterwards, the experimenter will announce the beginning of the next period.
There are two different situations that can arise from the players’ decisions. In the first situation, it is not the case that three group members nominate the same person, then everyone receives a payoff of 24 points for that period. In the second situation, three group members nominate the same person, and the nominating members receive 32 points whereas the nominee gets 0 points for that period. Nomination is not costly.
Be reminded that:
- The game will be repeated for 20 periods with the same players.
- Your total earnings will be the sum of all points you earn over all periods. For each point you earn in the experiment, you will get 1.25 Eurocents.
26 Question 1:
In one of the periods of the game the following are the choices of players:
Player M chose no one Player T chose player M Player G chose player P Player P chose player G
What is the payoff of player M? What is the payoff of player T? What is the payoff of player G? What is the payoff of player P?
Question 2:
In one of the periods of the game the following are the choices of players:
Player M chose player P Player T chose player P Player G chose player P Player P chose player T
What is the payoff of player M? What is the payoff of player T? What is the payoff of player G? What is the payoff of player P?
Question 3:
In one of the periods of the game the following are the choices of players:
Player M chose no one Player T chose no one Player G chose player M Player P chose player M
What is the payoff of player M? What is the payoff of player T? What is the payoff of player G? What is the payoff of player P?
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