Instructions - Page 1 of 7
Rounds
The experiment consists of
10 rounds
.
Bidder and Owner
Your role will be that of
Bidder
. You will begin each round by making a bid to purchase a commodity from the computer, whose role is that of
Owner
. The Owner will either reject the bid or accept it.
Values
The Owner has used the commodity and therefore knows its
value
(to them the Owner), whereas you the Bidder only know the range of possible values. The value of the commodity to you the Bidder is
1.5 times
its value to the Owner. (In other words, you the Bidder are willing to pay more for the commodity than the Owner has paid for it.)
Profit
Your profit depends on the size of your bid, the value of the commodity and whether the Owner rejects or accepts the bid.