Econ611V-BEE VCG Sep 1, 2004. VCG  You have $100.  A pool is set up so that you and another randomly paired person (also in this room) can put money.

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Presentation transcript:

Econ611V-BEE VCG Sep 1, 2004

VCG  You have $100.  A pool is set up so that you and another randomly paired person (also in this room) can put money in.  Any money you and your anonymous partner contribute will become 1.5 times the original amount (i.e. every dollar contributed will become $1.5.) and will be shared equally between you two.

VCG  The amount you choose is totally voluntary and confidential. The double-blind design guarantees neither the experimenter nor your partners know the amount you contribute.  You may contribute any amount between $0 and $100 (inclusive).  Please fill out the form and we will randomly pair the forms.

Thank you.

Part B Sequential VCG

 The setup is the same to Part A (concurrent) except that there will be two roles: player A and player B.  The roles will be assigned randomly now.  Every dollar contributed will become $1.5 and shared equally.

Sequential VCG  Player A: You will move first in this game. You will fill out the part A of the form. The form will be collected and distributed randomly to a player B.  Player B: Receiving the form, you will see the contribution level of a player A assigned to you. You will then fill out your contribution level in part B of the form.

We are going to collect the forms. Thank you!!!