Experiment Instructions

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 $15 by the experimenter.
  • The other person matched with you has been allocated $15 by the experimenter.


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

  OR

  • from the other person to yourself


• 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: $15 less the transfer
  • Other: $15 plus the transfer
  • from the other person to yourself: Take-home earnings will be
  • You: $15 plus the transfer
  • Other: $15 less the transfer