Experiment Instructions (Translated Into English)

Appendix 3

Experiment instructions (translated into English):

Welcome to the Experiment

This experiment is composed of two parts. You will now receive the instruction for the first part. At the end of the first part, you will receive the instruction for the second part of the experiment.

This is an experiment to investigate your evaluation of lotteries. At the end of the experiment you will receive an individual payoff based on the decisions you make (in part 1 and in part 2 of the experiment) according to the rules set out at the end of the experiment. Please read the instructions very carefully before starting the experiment. In particular, make sure that you have understood the payoff procedure before starting.

PART 1

You will face 100 pairs of lotteries. For each pair you will be asked to choose the lottery that you prefer the most. Below is an example of the pairs of lotteries you will face:

You will have to choose between Lottery A and Lottery B. Once you complete this task, one out of the 100 pairs of lotteries (the same for each student participating to the experiment) will be randomly chosen. The lottery that you stated as the most preferred will then be played for real.

PART 2

You will now be coupled with another student that is participating in the experiment. The composition of the group will remain fixed and anonymous during the entire experiment. You will never know who is in your group and the other member of the group will never know that you where in his/her group.

You will face 100 pairs of lotteries and for each pair you will be asked to choose the lottery that you prefer the most. If your choice coincides with your group partner, you will both move on to the next pair of lotteries. However, if your choices do not coincide, you will have to agree with your group partner about which lottery to choose to move on to the next pair. In order to find an agreement, you can interact with your group partner using the chat program. Note: please, make sure that while chatting with your group partner you do not disclose you identity.

Once you complete this task, one out of the 100 pairs of lotteries (the same for each student participating to the experiment) will be randomly chosen. The lottery that you stated as the most preferred will be played for real.