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<p>
<center>
<a href="#this">This Experiment</a><br>
<a href="#decisions">Decisions</a><br>
<a href="#examples">Examples</a><br>
<a href="#pairing">Pairing Players</a><br>
<a href="#forget">What if I forget?</a><br>
</center>

<a name="this"></a>
<h3>This Experiment</h3>
<p>
In this experiment there will be a total of 20 participants.<p>

Half of the people in this experiment will play the role of
<strong>Proposers </strong>and the other half will be
<strong>Responders.</strong> At the end of the instructions you will
find out which role you are assigned. <u>Your role will be the same
throughout the experiment</u>.<p>
EOF

Each day in the experiment you will make a new decision that will
determine the division of 100 tokens between a single Proposer and a
single Responder. Each token you earn each day is worth 5 cents. For
example, if the Proposer gets 30 tokens and the Responder gets 70,
then the Proposer will earn $1.50 (i.e. 30 x 0.05) and the Responder
will earn $3.50 (i.e. 70 x 0.05).<p>

Your earnings each round will accumulate toward your total monetary payoff.  
The experiment lasts for ten days, and one round is played each day.<p>

Next we describe the decisions both the Proposers and Responders must
make. Pay close attention to what both players must choose, since you
will need to understand both roles in order to make good decisions. 
<p>

<a name="decisions"></a>
<h3>Decisions</h3>

IMPORTANT: Both the Proposers and Responders must make their decisions
without knowing what any other participant in the experiment will
decide.

<p>Proposers will propose a split of 100 tokens.  The Responder will 
either accept or reject the proposal.  If the proposal is rejected, 
both participants earn no tokens.

<p>The <b>Proposer's</b> decision page looks like this:<p>

<table border=2><tr><td>
<h3>Proposer's Decision:</h3>

Divide 100 tokens.
<p>
<form action="null.cgi" method=post>

I propose to hold <input type=text name="hold" size=3> tokens, and
pass <input type=text name="pass" size=3> tokens to the Responder.  
<p>
(Hold and Pass tokens must sum to 100.)

<p>
<input type=hidden name="role" value="proposer">
<input type=reset value="Submit">
<input type=reset value="Clear">
</form>
</td></tr></table>
<p>
The Proposers must select a number between 0 and 100 to pass to the
Responders. They must do this without knowing what the Responders have
decided.<p>

The <b>Responder's</b> decision page looks like this:<p>

<table border=2><tr><td>
<h3>Responder's Decision:</h3>

<form action="null.cgi" method=post>
I will accept any proposal that passes at least <input type=text name="pass" size=3> tokens to me, and I will reject all others.
<p>

<i>If I reject the proposal, both the Proposer and I will get zero tokens.</i><p>

<input type=hidden name="hold" value=-1>
<input type=hidden name="role" value="responder">
<input type=reset value="Submit">
<input type=reset value="Clear">
</form>
</td></tr></table>
<p>

As you can see, the Responders will not necessarily accept all
proposals made by the Proposer. Here are a couple of examples to help
understand how payoffs are calculated:<p>

<a name="examples"></a>
<h3>Example 1:</h3>

Suppose the Proposer makes this decision: <p>
<table border=2><tr><td>
<h3>Proposer's Decision:</h3>

Divide 100 tokens.
<p>
<form action="null.cgi" method=post>

I propose to hold <input type=text name="hold" size=3 value=33> tokens, and
pass <input type=text name="pass" size=3 value=67> tokens to the Responder.  
<p>
(Hold and Pass tokens must sum to 100.)

<p>
<input type=hidden name="role" value="proposer">
<input type=reset value="Submit">
<input type=reset value="Clear">
</form>
</td></tr></table>
<p>
At the same time, the Responder enters this decision: <p>
<table border=2><tr><td>
<h3>Responder's Decision:</h3>

<form action="null.cgi" method=post>
I will accept any proposal that passes at least <input type=text name="pass" size=3 value=6> tokens to me, and I will reject all others.
<p>

<i>If I reject the proposal, both the Proposer and I will get zero tokens.</i><p>

<input type=hidden name="hold" value=-1>
<input type=hidden name="role" value="responder">
<input type=reset value="Submit">
<input type=reset value="Clear">
</form>
</td></tr></table>
<p>
Since 67 is greater than 6, the offer is accepted and the Proposer gets 33 tokens and the Responder gets 67. 
<p>

<h3>Example 2:</h3>

Suppose the Proposer makes this decision: <p>
<table border=2><tr><td>
<h3>Proposer's Decision:</h3>

Divide 100 tokens.
<p>
<form action="null.cgi" method=post>

I propose to hold <input type=text name="hold" size=3 value=92> tokens, and
pass <input type=text name="pass" size=3 value=8> tokens to the Responder.  
<p>
(Hold and Pass tokens must sum to 100.)

<p>
<input type=hidden name="role" value="proposer">
<input type=reset value="Submit">
<input type=reset value="Clear">
</form>
</td></tr></table>
<p>
At the same time, the Responder enters this decision: <p>
<table border=2><tr><td>
<h3>Responder's Decision:</h3>

<form action="null.cgi" method=post>
I will accept any proposal that passes at least <input type=text name="pass" size=3 value=55> tokens to me, and I will reject all others.
<p>

<i>If I reject the proposal, both the Proposer and I will get zero tokens.</i><p>

<input type=hidden name="hold" value=-1>
<input type=hidden name="role" value="responder">
<input type=reset value="Submit">
<input type=reset value="Clear">
</form>
</td></tr></table>
<p>
Since 8 is less than 55, the offer is rejected and both participants
get no tokens.<p>

<a name="pairing"></a>

<h3>Circular Matching</h3>

For each decision, you will be paired one time <b>with each of the
players in the other role</b>. We will then take the <b>average</b>
number of tokens you earned from all the pairings and deposit that
number of tokens into your Tokens Account.<p>

For instance, suppose there are three Proposers and three
Responders. Let's show how Proposer A's earning are
calculated. Suppose Proposer A decides to hold 33 and pass 67, as in
Example 1 above. Suppose that this is acceptable to 2 of the
Responders, but not to a third. Then person A accumulates an average
of (33 + 33 + 0)/3 = 66/3 = 22. We would then put 22 tokens into
person A's Token Account.<p>

Suppose Responder B decided to accept all offers that passed at least
27 to him. Suppose the three Proposers proposed to pass 54, 42, and
21. Then Responder B would accept two of these and reject one, and as
a result would earn an average of (54 + 42 + 0)/3 = 96/3=32. We would
then put 32 tokens into person B's Token Account.<p>

<i>NOTE:  In this experiment there are 10 Proposers and 10 Responders, 
so you will be matched with all 10 of the other role.</i>

<h3>Earning Money</h3>

The tokens you earn each day will accumulate in your Token Account. At
the end of the experiment the total tokens in your Token Account will
be multiplied by $0.05, and a check for that amount will be sent to
the address you gave at registration.  For instance, if you have 500
tokens in your token account, you will earn $25.<p>

<h3>One Decision Per Day</h3>

You are required to enter a new decision <b>every day</b>. Once you enter a
decision you may revise it any time until 2 a.m.<p>

You must log in <b>every day</b> to enter a decision, <i>even if your decision does not change!</i><p>

<h3>Notification</h3>

Every day you will receive an email that will report the results of
your decision for the prior day. After reading that email you can log on
again any time until 2 a.m. to enter your new decision.<p>

<a name="forget"></a>
<h3>What if I Forget?</h3>

If you forget to enter a decision, your decision from the prior day
will be used again, <b>BUT we will also charge you the FORGETTING
FEE of $5.00.</b><p>

<b>So, every time you forget to enter a decision, your final earnings
will be reduced by 5.00.</b><p>

<h3>Your Privacy</h3>

No one in the experiment will be able to identify you during or after the experiment.  
Your name will never be revealed to anyone during or after the experiment.  
Only the accountant who will mail you a check at the end of the experiment will see your
name.<p>

Most important, no one in the experiment will be able to identify you
during or after the experiment.<p><center><b><font color="#ff0000">DON'T
FORGET!  LOG IN EVERY DAY!</font></b></center><p>

<h3>Remember the Past</h3>

You may review the history of your results at any time simply by clicking the "History" link.<p>

<h3>Your Role</h3>

You have already been assigned a role in the experiment. You will play
the same role for every decision of the experiment.<p>

This concludes the instructions. You may review them any time during
the experiment simply by clicking on INSTRUCTIONS.<p>

Now you may find out your role, either Proposer or Responder, by
clicking here: <a href="index.cgi?role=1">YOUR ROLE</a>