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Experiment Instructions
IG
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Two Groups: Each participant in this experiment will be assigned to one of two groups: Active or Passive.
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Random Matching: Each participant in group Active will be randomly matched with one participant in group Passive.
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I. Group Passive subjects have no decisions.
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II. Group Active subjects make decisions, as follows:
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- 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
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