Comités Permanentes de la Asamblea de Área - Propósito y Responsabilidades

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Instructions and Screenshots for

Experiment in Chapter 3

B.1

Instructions – Introductory remarks (com-

mon to both treatments)

PLEASE WAIT UNTIL THE EXPERIMENTER TELLS YOU TO START

Welcome to our experiment!

You are about to participate in an experiment in decision-making. In this experiment we will first ask you to read instructions that explain the decision scenarios you will be faced with. Next, you will be asked to make decisions that will allow you to earn money. Your monetary earnings will be determined by your decisions and the decisions of other participants who interact with you in the experiment. All that you earn is yours to keep, and will be paid to you in private, in cash, at the end of today’s session. Your earnings will be kept strictly anonymous.

It is important that you remain silent and do not look at other people’s work. If you have any questions or need assistance of any kind, please raise your hand, and an experimenter will come to you. If you talk, exclaim out loud, etc., you will be asked to leave and you will forfeit your earnings. Thank you.

126 The experiment consists of three parts, parts I, II and III. You will par- ticipate in two parts. In each part in which you participate, you will anony- mously interact with other participants in the room. You will not interact with any participant more than once throughout the experiment. Thus, if you interact with a participant in one part, you will not interact with him/her in the other part in which you participate. The decisions that you make in a part will influence NEITHER the decisions you will be faced with NOR the participants you will interact with in the next part in which you participate.

We will now randomly determine the two parts in which you will par- ticipate.

You will participate in parts <? > and <? >.

B.2

Instructions – No-Feedback Treatment

Instructions for trustors – Send stage

In this part, you will be anonymously paired with two other partici- pants. For each pairing, you will be allocated £3 and the other participant will be allocated £0. Next, for each pairing, you will decide how much out of £3 to send to the other participant, keeping the rest for yourself. That is, for each of the two participants paired with you, you will send £X to him/her, and keep £(3-X) for yourself. Note that X has to be a whole amount in pounds between 0 and 3, i.e., (0, 1, 2, 3). The amount of money you send to each of the other participants, £X, will be tripled (by the exper- imenter). Hence, each of them will receive £(3×X). In summary, after you send £X to each of the two other participants, you will have £(3-X), and each of them will have £(3×X). However, the other participants will not be told how much you sent. Thus, neither of them will know how much s/he has as a result of your decision.

Next, each of the other two participants, will independently decide how much out of her/his money, £(3×X), to send back to you, with her/him

keeping the rest for her/himself. Since s/he does not know how much s/he has, s/he will be asked to specify for each of the three feasible amounts s/he could receive (i.e., £3, £6, £9), how much s/he would like to send back to you, £Y which will also be a whole amount in pounds, and which can vary with the amount s/he has, £(3×X). (Note that the other participants do not need to specify how much you would return if you were to send £0, because they would receive £0, and so can only send you £0.)

After both you and they have decided, we will match your actual de- cision of how much you sent them, i.e., £X, with the decision each of them made on how much s/he would send back to you if s/he were to have £(3×X) after your decision, to determine the amounts earned by each of you.

Your earnings for each pairing will be equal to the sum of the amount you keep for yourself, i.e. £(3-X) plus the amount sent back to you by the other participant, £Y. Each of the other two participants will earn the amount they keep for themselves out of £(3×X) they have after your deci- sion of sending £X, i.e., £(3×X-Y).

In summary, for each pairing, you will decide how much out of £3 you send to the other participant, keeping the rest for yourself. Each of the other participants receive the triple of the amount sent by you. They will separately and independently decide how much they would send back to you for each of your feasible decisions. After both you and they make your decisions, we will, for each pairing, match your decision with that of the other participant to determine that pairing’s outcome, i.e., the amount earned by each of you. However, you will only be informed about the outcomes at the end of the entire experiment. At that time, one of the two pairings will be randomly chosen, and you will be paid the earnings of its outcome in cash. Thus, the chance that you will be paid for a particular outcome is one in two. Likewise, for each pairing, the other participant also has the same chances (as you) of being paid his/her earnings.

[Only shown in theFeedback Treatment]: You will be informed about the actual amounts the others returned to you and your earnings at the end of this part.

128 Are there any questions? Please do not talk with others during the experiment.

Instructions for trustees – Return stage

In this part, you will be anonymously paired with two other partici- pants. For each pairing, you will be allocated £0 and the other participants will be allocated £3. Each of the other two participants will independently decide how much of the £3 to send to you, keeping the rest for him/her- self. That is, each of the other two participants paired with you will send £X to you, and will keep £(3-X) for her/himself. Note that X has to be a whole amount in pounds between 0 and 3, i.e., (0, 1, 2, 3). The amount of money each of the other participants sends to you, £X, will be tripled (by the experimenter). Hence, you will receive £(3×X). In summary, after each of the other participants sends £X to you, you will have £(3×X), and s/he will have £(3-X). However, you will not be told how much each of the other participants sent you. Thus, you won’t know how much you have received for each of the pairings.

Next, you will decide, for each of the three feasible amounts you might receive (3×X)(i.e., £3, £6, £9), how much you would like to send back to each of the other two participants, £Y, keeping the rest for yourself. £Y is a whole amount in pounds, which can vary with the amount you have, £(3×X). (You do not need to specify how much you would return if you were to receive £0, because you could only send back £0.)

After both you and they have decided, we will match their actual de- cisions of how much they sent you, i.e., £X, with the decision you made on how much you would send back to each of them if you were to have received £(3×X) as a result of their decisions, to determine the amounts earned by each of you. Your earnings for each pairing will the amount you keep for yourself out of (3×X) (the money you have after they send you £X), i.e. £(3×X - Y). Each of the other two participants will earn the amount they keep for themselves out of their initial allocation of £3, £(3-X), plus the amount sent back by you £Y.

In summary, each of the other two participants will decide how much out of £3 to send to you, keeping the rest for him/herself. You will receive

the triple sent by him/her. You will then decide how much you would send back to each of them for each of their feasible decisions. After both you and they make your decisions, we will, for each pairing, match your decision with that of the other participant to determine that pairing’s outcome, i.e., the amount earned by each of you. However, you will only be informed about the outcomes at the end of the entire experiment. At that time, one of the two pairings will be randomly chosen, and you will be paid the earnings of that outcome in cash. Thus, the chance that you will be paid for a particular outcome is one in two. Likewise, for each pairing, the other participant also has the same chances (as you) of being paid his/her earnings.

[Only shown in theFeedback Treatment]: You will be informed about the actual amounts the others sent to you and your earnings at the end of this part.

Are there any questions? Please do not talk with others during the experiment.

Instructions for Idle-Subjects

You are not participating in this part.

Please be patient and wait until this part is over.