Reputation Game

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.

Decision 1: Subject is endowed with 2 tokens. She/he need to decide to spend 2 tokens and work or keep 2 tokens and not work by clicking respective button. Let’s select “work”.

Decision 2: If subject works, there is 60% chance of finding 10 tokens and 40% chance of finding 0 tokens. In this example subject was successful. Second decision is to pay the fee to guarantee that the computer moves in the next stage or not. Let’s select “pay”.

Outcome of the computer: After confirming the choice from previous screenshot (choice cannot be changed), subject observes if computer also found the tokens or not and he/she updates her/his belief about the computers ability.

All those stages are repeated at most 4 times, depending if a subject or computer found the tokens.

Round 5 (Commitment round): If computer reaches round 5 she/he need to commit to one of the strategies that will be applied for the rest of the game automatically.

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