Italicized text was read aloud, except that enclosed in brackets []. Regular text appeared on the computer screen and was also read aloud.
[Introduce self and helpers. Then hit "C" on monitor.]
This is an experiment about economic decision making. If you follow the instructions carefully you might earn a considerable amount of money which will be paid at the end of today's session in private and in cash. [Show money.]
You will be making choices with a computer "mouse", which is located on the pad in the middle of your table. You may move the pad to the right or left if this would be more comfortable. Hold the mouse in a relaxed manner with your thumb and little finger on the mouse, and your index finger on a mouse button; let your hand pivot from the wrist. Use a light touch. Your mouse cursor (a white arrow on your screen) should move when you slide the mouse on the pad. If it does not, raise your hand.
To participate, you must be able to put your mouse cursor on an object displayed on the screen and click any one of the mouse buttons. We will call putting the mouse cursor on an object and then clicking your mouse "clicking on" an object.
Click on the "page down" icon located below to display the next page.
PG 1
This is a scientific experiment funded by the National Science Foundation, and as such it is important that you sit and remain SILENT. If you have any questions, or need assistance of any kind, RAISE YOUR HAND but DO NOT SPEAK. One of the experiment administrators will come to you and ask you to whisper your question. If you talk, laugh, exclaim out loud, etc., you will be asked to leave and you will not be paid. We expect and appreciate your cooperation.
This experiment will be conducted in two stages. In Stage I you and all other participants in this room will each make a number of decisions, and based on your combined choices, you will earn TOKENS. In Stage II, you will have the opportunity to receive DOLLARS based on the tokens you earned in Stage I. We describe Stage II first so you will understand how the tokens you earn affect the number of dollars you might win.
Click on Pg Dn.
PG2
At the end of Stage I you will have earned between 0 and 100 tokens for each decision. Each decision will be treated separately. The number of dollars you receive in Stage II will depend partly on the number of tokens you earned in Stage I and partly on chance. Specifically, you will roll three color-coded ten-sided dice to determine a number. [Show and demonstrate.] The blue die will count tens, the red die will count ones, and the white die will count tenths. For example, if you rolled 5 Blue, 4 Red, and 8 white, the number would be 54.8. All the possible numbers from 00.0 to 99.9 are equally likely. If the number of tokens you earned for the first decision is GREATER THAN the number you roll, then you win $2.00. If the number of tokens you earned for the first decision is LESS THAN OR EQUAL TO the number you roll, you get $0. You will repeat this rolling of dice for each decision made in Stage I.
For example, if you earn 80 tokens for your seventh decision, and on the seventh roll your number was 47.6, then you would win $2.00 for that decision. Note that since there are 800 out of 1000 possible rolls for which you would win [namely 00.0 up to and including 79.9], 80 tokens gives you an 80% chance of winning the $2.00 prize. Thus, the more tokens you earn, the greater will be your chance of winning the $2.00 prize.
WAIT FOR MY SIGNAL BEFORE GOING TO THE NEXT PAGE.
Click on Pg Dn
PG 3
During Stage I you and all other participants in this room will make
a fixed number of decisions. Each decision that you
face will be described by a MATRIX consisting of nine
| A | B | C | |
| A | 30 | 20 | 70 |
| B | 40 | 80 | 0 |
| C | 60 | 100 | 50 |
Click on Pg Dn
PG 4
Depending on your choice and the choices of all the other participants, you will earn TOKENS as follows:
Let (nA, nB, nC) denote the numbers of other participants in this session who chose A, B, and C respectively for this Matrix. Let N = nA+nB+nC, which is the number of other participants. If you chose row A, then using row A of the above Matrix, you will score 30 points each for the nA players, 20 points each for the nB players, and 70 points each for the nC players. Your TOKEN EARNINGS for this Matrix would be your average point score: (30nA + 20nB + 70nC)/N.
Similarly, if you chose row B, then using row B, your token earnings would be: (40nA + 80nB + 0nC)/N; and if you chose row C, your token earnings would be: (60nA + 100nB + 50nC)/N.
We will now work through a numerical example of how your token earnings will be affected by your choices and the choices of all other participants. Consider the previous Matrix (still displayed at the front of the room). A hard copy of the text I will be reading to you is being handed out now. You may follow along as I read.
Click on DEMO
PG 5
First we write down three columns of numbers with headings "A", "B" and "C". Observe the display in the front of the room. Next write underneath the headings the numbers of other participants in this session who chose row A, B and C respectively for this Matrix.
For example, suppose there were 50 other participants and 30 chose A, 10 chose B, and 10 chose C; i.e. (nA, nB, nC) = (30, 10, 10). Then we write down "30 10 10" underneath the headings. These round numbers make the arithmetic of our example easy, but for the real experiment we will use the actual choices of the participants in this room.
Now suppose you chose row A; then we write down row A of the Matrix
underneath. Multiply each column, add the results and divide by the total
number of other participants N = (30+10+10) = 50:
|
|
|
|
||
| Choices of Others |
|
|
|
|
| Row A: |
|
|
|
|
| Product: |
|
|
|
|
Now suppose you chose row B:
|
|
|
|
||
| Choices of Others |
|
|
|
|
| Row B: |
|
|
|
|
| Product: |
|
|
|
|
Now suppose you chose row C:
|
|
|
|
||
| Choices of Others |
|
|
|
|
| Row C: |
|
|
|
|
| Product: |
|
|
|
|
WAIT FOR MY SIGNAL BEFORE TURNING TO THE NEXT PAGE.
During the experiment, Matrices will be displayed on the "Main Screen". You will be able to use the mouse to cause the computer to calculate hypothetical token earnings. You will also make your choices using the mouse. We will view a demonstration version of the Main Screen next. As you view the "Demo" Screen on the actual computer I will read these instructions and refer to images you can see on your compute screen and on the projection screen at the front of the room.
WAIT FOR MY SIGNAL TO CLICK ON "DEMO".
The top line of the Demo screen is blue and has "DEMO" in the center. The second line is light blue, and has the word "RETURN" on the left-hand side. The only difference between this Demo Screen and the Main Screen is these two top lines. We will discuss this difference later.
Below the second line of the Demo Screen (and the Main Screen) are the data for the experiment. The "Matrix" that represents your decision problem is displayed as a large blue square with nine cells containing numbers between 0 and 100. The rows are labeled "Your Choice" and "A B C" on the left-hand side in green. The columns are labeled "Choices of Others" and "A B C" on the top in yellow.
On the far right-hand side of the screen is a vertical column (or "bar") of numbers with the heading "Active Matrix" (in yellow). Initially, "1" is framed in yellow, and all the numbers are displayed in light blue. The number that is framed is the ID number of the Matrix which is currently displayed on the screen. At the bottom of the screen is a message that reads "You have 3 matrices left", which indicates that there are 3 matrices for which you have not made a choice.
Directly below the large blue Matrix are three small blue boxes each containing "0". This is where you can enter hypothetical numbers for the other participants' choices.
Below these boxes is a small greyish rectangle labeled "CALC". Clicking on this box will cause the computer to calculate your hypothetical token earnings on this Matrix for each of your potential choices given the hypothetical Choices of Others that you have entered in the blue boxes. These hypothetical earnings will be displayed (in white) immediately to the right of the Matrix. To demonstrate this, we will use this Demo Screen to do the example we just did by hand.
To enter "30" for the number of other participants who chose A, first click on the blue box under column A. The mouse cursor will disappear. Then slide your mouse forward. As you slide your mouse, the displayed number should increase. Keep sliding it until you reach 30. If you go past 30, then simply stop and slide your mouse backwards. Slide it slowly to change the numbers slowly. When the displayed number is 30, stop and click a mouse button. The mouse cursor will reappear. If the number changed, don't worry; simply click on the box again, slide the mouse forward or backward until 30 appears in the box; then stop and click a mouse button.
Notice that as soon as you started sliding the mouse, a number appeared to the immediate right of these three boxes. In fact, the same number appears there as in the left-most box. That number is the total of the numbers displayed in the three boxes. Also notice that below the three blue boxes are small numbers "100.000, 0.000, 0.000". This means that 100% of the total entered in the boxes is allocated to A, and 0% is allocated to B and C.
To enter "10" for the number of other participants who chose B, click on the blue box under column B, and slide the mouse forward and backward until 10 appears; then stop and click a mouse button. Notice that now "40" appears immediately to the right of these blue boxes, because 40 is the sum of the numbers displayed in these boxes. Also notice that below the three blue boxes are small numbers "75.000, 25.000, 0.000". This means that 75% of the total entered in the boxes is allocated to A, 25% is allocated to B, and 0% is allocated to C.
To enter "10" for the number of other participants who chose C, click on the blue box under column C, and slide the mouse forward and backward until 10 appears; then stop and click a mouse button. Notice that now "50" appears immediately to the right of these blue boxes, because 50 is the sum of the numbers displayed in these boxes. Also notice that below the three blue boxes are small numbers "60.000, 20.000, 20.000". This means that 60% of the total entered in the boxes is allocated to A, and 20% is allocated each to B and C.
If anybody does not have "30, 10, 10" showing in the three blue boxes, RAISE YOUR HAND.
Now click on "CALC". Three numbers will appear (in white) immediately to the right of the Matrix. The white number in row A should be 36.00 and represents your hypothetical token earnings if you choose row A, while the other participants choose (30,10,10). The white number in row B should be 40.00 and represents your hypothetical token earnings if you choose row B under the same hypothesis, and the white number in row C should be 66.00 and represents your hypothetical token earnings if you choose row C under the same hypothesis. Note that these are the same numbers we calculated by hand [see the first page of this handout].
Your token earnings depend on the PERCENTAGE of other participants who chose A, B and C, and not the absolute numbers. To demonstrate this fact, we will do another exercise, in which the percentage of others' choices is still "60.000, 20.000, 20.000", but with different absolute numbers.
Suppose that instead of 50 other participants, there were half as many (i.e. 25), and that exactly half as many as before made each choice: that is 15 chose A, 5 chose B and 5 chose C.
Now enter "15, 5, 5" in the blue boxes. (As soon as you change one of the numbers, the previously calculated hypothetical token earnings are erased.) When you have entered "15, 5, 5" successfully, "25" should appear to the right as the total, and "60.000, 20.000, 20.000" should appear below the boxes (the same as before). Now click on "CALC". Immediately to the right of the Matrix appear the hypothetical token earnings "36.00, 40.00, 66.00" (the same as before).
Therefore, you do not have to make the total of others' choices equal to the number of other participants in this room. You could use a multiple of that number (such as ten) or any fixed number (such as 100) as a target total, or you could ignore the absolute total and pay attention only to the percentages.
With the next practice exercise, we will demonstrate how the distribution of the choices of the other participants affect your token earnings. Suppose that other participants' choices are 11 A's, 0 B's, and 39 C's. Enter these numbers in the boxes below the Matrix. When you have entered them successfully, "50" should appear to the right as the total, and "22.000, 0.000, 78.000" should appear below the boxes. Now click on "CALC". Immediately to the right of the Matrix appear the hypothetical token earnings "61.20, 8.80, 52.20", which is different from before.
CAUTION: The numbers used in these exercises were selected arbitrarily. They are NOT intended to suggest how participants might respond if this Matrix were used in the actual experiment.
WAIT FOR MY SIGNAL BEFORE TURNING THE PAGE
We will now demonstrate how you make a choice. Click anywhere on the large blue Matrix. One of the rows will be framed in bright green and the mouse cursor will disappear. By sliding your mouse forward and backward you can cause the framed row to change (up or down). Slide the mouse until the row you want to choose is framed. To make this choice, click a mouse button once. Try this NOW.
As soon as you have made a choice, the mouse cursor will reappear, and the color of the Active Matrix number (which is framed in bright yellow on the right-hand side of the screen) will change from a bright light blue to a dull grey, and the message at the bottom of the screen will show one fewer matrix left. If this doesn't happen, then click a mouse button again. Once your choice has been recorded, the row you chose will stay framed in bright green, and moving the mouse will no longer change the framed row.
To change your choice, simply click on the Matrix again, slide the mouse to change the framed row, and click a mouse button. You can make a choice at any time. It is not necessary to do any hypothetical calculations before making a choice, but you may do as many as time permits. After making a choice, you can change your choice, and you can make as many hypothetical calculations as time permits.
To select a Matrix, click on the corresponding number in the Active Matrix bar (on the right side of the screen). The number you clicked will now be framed in yellow, and the corresponding Matrix will appear.
To demonstrate this, click on "3" in the Active Matrix bar. Notice that "3" is now framed in yellow, and that there are new numbers in the Matrix. You may return to Matrices that you previously selected. When you do this, the screen will re-appear exactly as you left it. To demonstrate this, click on "1" in the Active Matrix bar now.
You must make a choice for each Matrix listed in the Active Matrix bar. Failure to make a choice for each Matrix will mean forfeiture of all your token earnings for all the Matrices.
The message at the bottom of the screen tells you the number of matrices for which you have not made a choice, and the Active Matrix numbers that are still in light blue tells you which matrices.
Each Matrix will be treated completely separately. That is, your token earnings for a specific Matrix will depend on your choice and the actual choices of all other participants in this session for that Matrix by itself. There is absolutely no linkage between different Matrices.
Please give this handout to one of the aides as they come by to collect
them. The Instructions Screen, which we will return to momentarily, contains
three pages that summarize the information in this handout.
WAIT FOR MY SIGNAL BEFORE CLICKING ON RETURN
The next three pages (6, 7 and 8) contain summaries of what we have demonstrated: (1) making hypothetical token-earnings calculations, (2) making a choice, and (3) selecting Matrices. Please read these 3 pages now to yourself.
Directly below the large blue Matrix are three small blue boxes. This is where you can enter hypothetical numbers for the choices of the other participants. To enter a number, first click on a small blue box. The mouse cursor will disappear. Then slide your mouse forward or backward to make the number increase or decrease. When the desired number is displayed, stop and click a mouse button. The mouse cursor will reappear. The number might change if you happen to slide the mouse while clicking. To change the number, simply click on the box again, slide the mouse forward or backward until the desired number is displayed; then stop and click a mouse button. Under the blue boxes is displayed the percentage of the total number of other participants that you have allocated hypothetically to each possible choice.
To make the computer calculate your hypotheical token earnings given the numbers you have entered in the blue boxes, click on "CALC". Three numbers will appear (in white) immediately to the right of the Matrix, indicating your token earnings for each of the possible choices.
CAUTION: The numbers used in these exercises were selected arbitrarily. They are NOT intended to suggest how participants might respond if this Matrix were used in the actual experiment.
PG 6
We will now demonstrate how you make a choice.
Click anywhere on the large blue Matrix. One of the rows will be framed in bright green and the mouse cursor will disappear. By sliding your mouse forward and backward you can cause the framed row to change (up or down). Slide the mouse until the row you want to choose is framed. To make this choice, click a mouse button once. As soon as you have made a choice, the mouse cursor will reappear, the color of the Active Matrix number (framed in bright yellow) will change from a bright light blue to a dull grey, and the message at the bottom of the screen will show one fewer matrix left. If this doesn't happen, then click a mouse button again. Once your choice has been recorded, the row you chose will stay framed in bright green, and sliding the mouse will no longer change the framed row.
To change your choice, simply click on the Matrix again, slide the mouse to change the framed row, and click a mouse button.
You can make a choice at any time. It is not necessary to do any hypothetical calculations before making a choice, but you may do as many as time permits. After making a choice, you can change your choice, and you can make as many hypothetical calculations as time permits.
PG 7
To select a Matrix, click on the corresponding number in the Active Matrix bar (on the right side of the screen). The number you clicked will now be framed in yellow, and the corresponding Matrix will appear. You may return to Matrices that you previously selected. When you do this, the screen will re-appear exactly as you left it.
You must make a choice for each Matrix listed in the Active Matrix bar. Failure to make a choice for each Matrix will mean forfeiture of all your token earnings for all the Matrices. The message at the bottom of the screen tells you the number of matrices for which you have not made a choice, and the Active Matrix numbers that are still in light blue tells you which matrices.
Each Matrix will be treated completely separately. That is, your token earnings for a specific Matrix will depend on your choice and the actual choices of all other participants in this session for that Matrix by itself. There is absolutely no linkage between different Matrices.
WAIT FOR MY SIGNAL BEFORE GOING TO THE NEXT PAGE
PG 8
CAUTION: When you are in the DEMO Screen and click on RETURN, your entries will be erased! Therefore, have an aide check your answers before clicking on RETURN. When you are done and your answers have been checked, you may click on RETURN and reread pages 6, 7 and 8 of the Instructions.
[Wait for aides to signal that everyone is done and has 100% correct. Then, announce that everyone has 100% correct.]
Now please click down to page 9.
We will now look at the Main Screen. While we do this, I will read these instructions. Click on "MAIN" now.
The top line of the main screen is blue and has "MAIN SCREEN" in the center. The left side of the top line has "Period: 0". The right side displays a clock telling you how many minutes and seconds remain in the current period. During this pre-experiment period, the period length is set for 3 minutes. When there are 60 or fewer seconds remaining, the top line color changes to green, and when there are 20 or fewer seconds remaining, the top line color changes to red.
The second line is light blue, and has the words "INSTR" and "RECORD" on the left hand side. During the session you will be able to review these Instructions by clicking on "INSTR".
Click on INSTR now.
Notice that the screen displays the same page of instructions that we just left. We will now go to the next page to read about this Instruction Screen._
Click on Pg Dn
PG 9
The top line is blue and has "INSTRUCTIONS" in the center. The second line is light blue and has "RETURN" on the left side. To page through the instructions, simply click on the "page down" and "page up" icons on the bottom line. As long as the clock has not run out, the computer keeps a "bookmark" in the Instructions to make it easy for you to return to that place.
We will wait for the 60 second warning, while viewing this screen. The 60 second warning will automatically return us to the Main Screen. When back in the Main Screen, notice that the clock has 60 or fewer seconds and that the color of the top line is green.
[Pause.] The 60 second warning has automatically returned us to the Main Screen. Notice the clock and the color of the top line. We will return to the Instruction Screen and wait for the 20 second warning. Click on "INSTR" now.
The 20 second warning will automatically return us to the Main Screen. When back in the Main Screen, notice that the clock has 20 or fewer seconds and that the color of the top line is red. During these final seconds, you cannot leave the Main Screen to view the Instruction or Record Screens.
[Pause.] The 20 second warning has returned us to the Main Screen. Notice that the clock has fewer than 20 seconds and that the color of the top line is red. During these final seconds, you _cannot leave the Main Screen. If you click on INSTR or RECORD, nothing will happen.
During the regular experiment, the green warning will come when 2 minutes remain, and the red warning will come when 30 seconds remain. If the green or red warning occurs while you are sliding the mouse cursor to enter a hypothetical number or to make a choice, you will need to click a mouse button to resume what you were doing.
[GX3.EXE returns to Page 10, so they must Pg Dn once.] Click on Pg Dn
PG 10
The "RECORD" Screen will be used at the end of the first period to display your actual token earnings. If you click on "RECORD" during the first experimental period, you will see a screen with headings but no data. Click on "RECORD" now.
We will explain this screen in more detail at the end of Period 1. If the green or red time warning occurs while you are viewing Instructions or the Record Screen, you will be automatically returned to the Main Screen.
To return, click on "RETURN" now.
You may now click on MAIN and practice making hypothetical token-earnings calculations, selecting matrices and making choices for each of the three Matrices before the 3 minutes expire.
WAIT FOR MY SIGNAL BEFORE GOING TO THE NEXT PAGE
[GX3.EXE returns to Page 10, so they must Pg Dn to Pg 12]
Click on Pg Dn
PG 11
Stage I will consist of two periods. This concludes the instruction phase for Period 1. Instructions for Period 2 will be given following the completion of Period 1.
Period 1 will take 15 minutes, so the clock will start with 15 minutes. The green warning will occur when there are 2 minutes remaining, and the red warning will occur when there are 30 seconds left.
Every participant in this room will be presented with 15 Matrices just like the examples we went through. Each Matrix will also be displayed at the front of the room. Your first
screen will display Matrix 1. Remember that failure to make a choice for each of the 15 Matrices will mean forteiture of your token earnings for the entire period. Just before Period 1 starts, your screen will be black except for the words "WAITING TO PROCEED". You may begin as soon as your screen displays the first Matrix, and you may proceed without further signals from me until you have made your 15 decisions. After that, you may review the Instructions or continue to review your choices. However, you may not talk or stand up.
On the next page is a brief summary of these instructions. Page down now.
PG 12
To Select A Matrix: click on the ID number in the Active Matrix bar. If the ID number is light blue, you still need to make a choice for that Matrix. You must make a choice for each Matrix to earn any tokens.
To Make A Choice: click on the Matrix box, slide the mouse up and down to frame the desired row, then click a mouse button.*
To Enter Hypothetical Choices of Others: click on a blue box under the Matrix, slide the mouse to change the displayed number, then stop and click a mouse button.*
To Calculate Hypothetical Token Earnings: click on CALC.
To Review Instructions: click on INSTR.
*If the green or red warning occurs, click a mouse button to resume
this activity.
PG 13
IT IS EXTREMELY IMPORTANT that you REMAIN SILENT!
You are now looking at the Record Screen, which gives the results for Period 1. The first column indicates that this is Period 1. The second column gives the Matrix ID number, and the third column gives your choice. The next three columns give the total choices of the other participants in this room, and the fourth column gives your token earnings.
I will now pass out a blue RECORD SHEET with these same headings, plus two columns that will be used during Stage II. To convert your token earnings into Dollars in Stage II, you must transfer the information from your Record Screen to this blue RECORD SHEET. Do this now.
WAIT FOR MY SIGNAL BEFORE PROCEEDING
Click on RETURN now.
In Period 2 you will be presented with the exact same 15 Matrices as in Period 1. Again, you will have 15 minutes to make your choices. The screens will operate exactly as in Period 1.
There will be one additional piece of information displayed on these Period 2 screens. Above the large blue Matrix and under the (yellow) "A B C" column headings will be a line giving the PAST total choices all other participants in this room on this Matrix during Period 1. Also, by clicking on "RECORD" and then "PREVIOUS", you can view the previous period's results for all the Matrices.
Just before Period 1 starts, your screen will be black except for the words "WAITING TO PROCEED". You may begin as soon as your screen displays the first Matrix, and you may proceed without further signals from me until you have made your 15 decisions. After that, you may review the Instructions or continue to review your choices. However, you may not talk or stand up. Remember that failure to make a choice for each Matrix will mean forfeiture of all your token earnings for all the Matrices in this period.
If you have any questions, please raise your hand.
[Have them click on RETURN when ready, and wait for my signal.]
We will now pass out another blue RECORD SHEET. As before, transfer the information on the screen for Period 2 to this Record Sheet in order to be able to convert your token earnings into Dollar winnings in Stage II.
Aides will be coming around with dice trays. They will first look at your RECORD SCREEN, verify your token earnings written on your blue Record Sheet. Then you will roll the dice 30 times, recording the results in column 5 of your blue Record Sheets. The aide will sign your blue Record Sheets in the upper right-hand corner. Finally, you will proceed to the payment station, where your dollar winnings will be paid to you in cash.