Instructions – Experiment 12

This experiment goes over 3 rounds. In the beginning of each round, participants are
randomly (re-)matched to pairs. That means that in each round you will interact with a
different participant. The experiment is computerised. You make all your decisions at the
computer.
In each round, the two participants in each pair are randomly assigned to the roles of
persons A and B. The two persons will take turns in sequence. When it is her turn, a person
chooses either “right” or “down”. As soon as a person chooses “down”, the round is
finished. If the round continues then the other person faces the same choice “right” or
“down”. If a person is the last to decide, then the game also ends after “right”. Person A
begins. Each person will have a maximum of 5 choices to make.
Below you see a pictorial of the choices in each round. The circles indicate which person
makes a decision. The small numbers at the circles indicate the number of the decision in
the sequence. The payoffs at the end of the line pointing down are the payoffs which the
two persons receive if the person who’s turn it is chooses “down”. At the end of the line
pointing right there is the choice of the other person which follows after the current person
chooses “right”. At the very right, the payoffs at the end of the line pointing right are the
payoffs which the two persons receive if the person at the end chooses “right”. All payoffs
are given in E$.
1 2 3 4 5 6 7 8 9 10
A: 96
A B A B A B A B A B B: 32

A: 3 A: 1.5 A: 6 A: 3 A: 12 A: 5.5 A: 24 A: 11.5 A: 48 A: 22.5

B: 1 B: 4 B: 2 B: 8.5 B: 4 B: 17 B: 8 B: 34 B: 16 B: 68

The round ends when one person has chosen “down” or after the last choice at the very
right has been made. For the new round, pairs will be randomly re-matched.
Your E$ payoff from this experiment is the payoff from one randomly selected round out of
the 3 rounds.
Any questions?