Investment (Cash-Out) Game
Goal: The goal of this experiment is to study how people respond to the arrival of new information after they have already made an investment decision and are considering whether to pull out their investment or not.
Story: Subjects receive a $15 endowment and have to decide how much of their $15 endowment to invest in a lemonade stand. The lemonade stand can operate for up to 10 days, in groups of 5 days at a time. For the lemonade stand to be successful, in some Rounds, at least 5 of the days it operates have to be sunny. In other Rounds, at least 6 of the days it operates have to be sunny. Subjects know the minimum number of sunny days they need for success at the start of a Round before they make any decisions.
Goal: To investigate the possibility of collaboration and potential dynamics among two players. Are high ability players willing to sacrifice their reputation to enhance cooperation?
Story: Subjects need to accumulate as many tokens as possible. In every game, they are matched with the pre-programmed computer, which has an either high or low type. The game consisted of up to 5 rounds. In the first four rounds, subjects decide to cooperate with the computer or not. In the fifth round, subjects need to commit to cooperation or free riding for the rest of the game.
The experiment was coded as part of my RA work for Chloe Tergiman. See paper Adverse and Advantageous Selection in the Laboratory for the detail of the experiment.