Welcome to our task! All participants will remain anonymous throughout the whole task. Please read the instructions carefully. To ensure your understanding the main task will begin only after you answer four questions about the task correctly. Your income ranges from a minimum of 0.50 USD to a maximum of 1.50 USD and depends on your actions and the actions by another participant, as explained in more detail below.
In the task you are expected to make one decision. At the beginning, two participants are randomly matched together. You and the other participant make your decisions separately, without knowing what the other one is doing.
One of you is randomly assigned the role of a PROPOSER and the other is assigned the role of a RESPONDER. Initially, the PROPOSER receives 1.00 USD and needs to make an offer to the RESPONDER on how to split this money. The RESPONDER can either accept or reject this offer. If the RESPONDER accepts the offer, the 1.00 USD are split according to the offer. If the RESPONDER rejects, both the participants receive nothing (0.00 USD).
(1). Assume that the PROPOSER offered to give 0.60 USD to the RESPONDER and therefore keep 0.40 USD. Further, suppose the RESPONDER decided to accept a minimum share of 0.25 USD. Thus, the PROPOSER offered more than the minimum share demanded by the RESPONDER.
Result: The RESPONDER accepts the PROPOSER's offer. The PROPOSER gets 0.40 USD and the RESPONDER gets 0.60 USD.
(2). Assume that the PROPOSER offered to give 0.40 USD to the RESPONDER and therefore keep 0.60 USD. Further, suppose the RESPONDER decided to accept a minimum share of 0.55 USD. Thus, the PROPOSER offered less that the minimum share demanded by the RESPONDER.
Result: The RESPONDER rejects the PROPOSER's offer. The PROPOSER gets 0.00 USD and the RESPONDER gets 0.00 USD.