This is an experiment in the economics of decision-making.

You will have the opportunity to engage in 10 rounds of a decision procedure. 

You will be participating in a decision procedure in which the participants take turns in deciding whether to buy a fictitious item with known value of $6.40.

If you BUY THE ITEM, your earnings will be given by:

         EARNINGS = $6.40 – PURCHASE PRICE.

If you DO NOT BUY THE ITEM, your EARNINGS WILL BE ZERO for that round.

If the participant whose turn it is clicks on the PURCHASE button that would end the decision procedure and he/she would buy the item at the price showing on the price clock.

On the other hand, if the participant whose turn it is does NOT click on the PURCHASE button then the opportunity to purchase the item passes to the other person after a 10 second delay. 

You will be randomly selected to be either Player 1 or Player 2.  You will keep your role as Player 1 or Player 2 throughout the experiment.

Player 1 will always be the first person to have an opportunity to purchase the item. If Player 1 chooses not to purchase the item then Player 2 will get the next turn. 

If Player 2 chooses NOT to purchase the item then Player 1 will get the next turn. 

The current price at which a purchase can be made is displayed on the price clock.

The price on the clock ticks down every 10 seconds until either Player 1 or Player 2 clicks on the PURCHASE button and thereby purchases the item at the price displayed on the price clock at that time or the price reaches zero (in which case Player 1 will get the item). 

The price clock starts with a price of $6.20 at which neither player has an opportunity to PURCHASE.

LOOKING AT THE FIRST PRICE CLOCK TICK

If you have been randomly selected to be Player 2 then you cannot purchase the item at the first price clock tick; your PURCHASE button is not active on this tick.

If you have been randomly selected to be Player 1 then the first price at which you are able to purchase the item is $6.00.

If Player 1 wants to purchase the item for $6.00 then he/she should click on the PURCHASE button. 

If Player 1 does NOT want to purchase the item for $6.00 then he/she DO NOTHING and the purchase opportunity will pass to Player 2 after 10 seconds. 

Player 1	Player 2

LOOKING AT THE SECOND PRICE CLOCK TICK

Player 1 cannot purchase the item at the second price clock tick; his/her PURCHASE button is not active on this tick.

If Player 1 did not earlier purchase the item for $6.00 then Player 2 gets an opportunity to purchase for $5.60.

If you are Player 2 and want to purchase the item for $5.60 then click on the PURCHASE button.

If Player 2 does NOT want to purchase the item for $5.60 then he/she should DO NOTHING and the purchase opportunity will pass to Player 1 after 10 seconds.

Player 1	Player 2

LOOKING AT THE THIRD PRICE CLOCK TICK

Player 2 cannot purchase the item at the third price clock tick; his/her PURCHASE button is not active on this tick.

If Player 2 did not earlier purchase the item for $5.60 then Player 1 gets an opportunity to purchase the item for $4.80.

If you are Player 1 and want to purchase the item for $4.80 then click on the PURCHASE button.

If Player 1 does NOT want to purchase the item for $4.80 then he/she should DO NOTHING and the purchase opportunity will pass to Player 2 after 10 seconds.

Player 1	Player 2

LOOKING AT THE FOURTH PRICE CLOCK TICK

Player 1 cannot purchase the item at the fourth price clock tick; his/her PURCHASE button is not active on this tick.

If Player 1 did not earlier purchase the item for $4.80 then Player 2 gets another opportunity to purchase.

If you are Player 2 and want to purchase the item for $3.20 then click on the PURCHASE button.

If Player 2 does NOT want to purchase the item for $3.20 then he/she should DO NOTHING and the purchase opportunity will pass to Player 1 after 10 seconds.

Player 1	Player 2

LOOKING AT THE FIFTH PRICE CLOCK TICK

Player 2 cannot purchase the item at the fifth price clock tick; his/her PURCHASE button is not active on this tick.

If Player 2 did not earlier purchase the item for $3.20 then Player 1 gets to purchase the item for $0.

If you are Player 1 and want to purchase the item for $0 then you can click on the PURCHASE button or do nothing. In either case, you will purchase the item for $0.

Player 1	Player 2

MANY ROUNDS BUT DIFFERENT PLAYERS

You will participate in the decision procedure many times; each participation repetition is called a "round".

You will be randomly selected as either Player 1 or Player 2 in the first round and this role will stay the same in all rounds.

The first player to click on PURCHASE ends that round.

You will be paid the sum of your payoffs from all rounds.

You will play 10 rounds.

In each round you will be matched with a different person.

Do you have any questions at this time? If so, please raise your hand to notify the experimenter. ONCE YOU CLICK "Finish Reading" YOU WILL EXIT THE INSTRUCTIONS, SO PLEASE ASK ANY QUESTIONS YOU MAY HAVE FIRST. When you have finished reading, and have asked any questions you might have, please click "Done".