Experiment Instructions

IG

 

Two Groups: Each participant in this experiment will be assigned to one of two groups: Active or Passive.

 

Random Matching: Each participant in group Active will be randomly matched with one participant in group Passive.

 

I. Group Passive subjects have no decisions.

 

II. Group Active subjects make decisions, as follows:

 
  • One decision: You will make one and only one decision in this experiment.

  • No Show-up fees: There are no show up fees in this experiment. Your entire payoff and the entire payoff for another person in this experiment will be determined by your one decision.

  • Beginning amount of money:
    • You have been allocated $27 by the experimenter.
    • The other person matched with you has been allocated $3 by the experimenter.

  • Decision task: You can make no change or choose to transfer money
    • from yourself to the other person

  • You can choose any whole dollar amount from $0 to $8.

  • If you choose to transfer money
    • from yourself to the other person: Take-home earnings will be
      • You: $27 less the transfer
      • Other: $3 plus the transfer