Instructions - Page 1 of 6
Rounds
The experiment consists of
10 rounds
.
Currency Attacks
You are a
currency trader
and in each round you have to decide whether or not to attack the currency of a particular country. You are paired with
6 other traders
who have to make the same decision. If you decide to
attack
the currency, your profit depends on how many of the
other
6 traders also decide to attack; the more others who attack, the larger your profit. If you decide
not
to attack, your profit does
not
depend on the others' decisions.
Currencies A and B
There are two currencies, called
Currency A
and
Currency B
. Your group of 7 traders will trade
one
currency only in each round and you will be told which of the two currencies it is. If you decide to
attack
that currency, your profit is
the same for both A and B
, ranging from
£2
to
£14
, depending on how many of the other 6 traders also decide to attack. If you decide
not
to attack, your profit is either
£5
for A or
£11
for B.
Profit
Your profit in each round is determined by the following table.
Table of Profits
Your Decision
Currency
Number of other traders who choose to attack
0
1
2
3
4
5
6
Attack
either
£2
£4
£6
£8
£10
£12
£14
Do Not Attack
A
£5
£5
£5
£5
£5
£5
£5
Do Not Attack
B
£11
£11
£11
£11
£11
£11
£11