1. Welcome to this experiment

2. Instructions Please read the written instructions in conjunction with this PowerPoint presentation. The presentation is to supplement the written instructions. Please note the Bingo Blower in the lab and the fact that there are pink, blue and yellow balls inside. After you have responded to the various questions in the experiment, you will go to the Bingo Blower and you will eject one ball at random. Moreover, at the end of the experiment, one of the 76 questions will be picked at random. The colour of the ejected ball, combined with your answer during the experiment, will determine your payment for taking part in this experiment.

3. The First Type of Question In this type you will be given a quantity of tokens and you will be asked to allocate them between two of the three colours in the Bingo Blower: that is, between pink and blue, or between blue and yellow, or between yellow and pink. You will also be told the exchange rate between tokens and money for each colour. Using these exchange rates an allocation of tokens between the two colours implies an amount of money for each of the two colours. An example is shown on the next slide (between yellow and blue).

5. Payment if this problem selected at random If the ball ejected was yellow you would get paid £10.00, if the ball ejected was blue you would get paid £25.00 and if the ball ejected was pink you would get paid nothing.

6. The Second Type of Question In this type you will be given a quantity of tokens and you will be asked to allocate them between one of the three colours in the Bingo Blower and the other two: that is, between pink and not- pink (that is, blue and yellow), or between blue and not-blue (that is, yellow and pink), or between yellow and not-yellow (that is, pink and blue). You will also be told the exchange rate between tokens and money for the single colour and for the other two colours combined. Using these exchange rates an allocation of tokens between the one colour and the other two implies an amount of money for the one colour and the other two. An example is shown on the next slide (between blue and not- blue – that is, pink and yellow).

8. Payment if this problem selected at random If the ball ejected was blue you would get paid £25.00, if the ball ejected was pink you would get paid £10.00 and if the ball ejected was yellow you would get paid £10.00.

9. End Note that the payment we refer to above excludes the participation fee of £5 which you will automatically get independently of your answers. If you are ready to start, please call over an experimenter. Please note that you will be forced to wait at least 30 seconds before confirming your decision on any problem. Thank you for your participation.