Intervention(s)
The experiment consists of two parts and we randomly choose one part to determine payments.
In Part A, subjects perform a logic test with 10 questions and we elicit their beliefs about scoring in the top half in a group of 20 subjects, including themselves.
Subjects receive two payoffs in Part A. One payoff is provided by evaluator 1, and the other by evaluator 2. Exactly one of the two evaluators is a performance evaluator and exactly one of the two evaluators is a random evaluator. However, subjects are not aware of which evaluator corresponds to each role. The performance evaluator's payoff is determined based on subjects' performance in the logic quiz compared to a group of 20 subjects, including themselves. If their performance ranks in the top half of the group, the performance evaluator pays them $2. On the other hand, if their performance ranks in the bottom half, the performance evaluator provides no payment, resulting in a payoff of $0. The random evaluator determines subjects' payoff by tossing a coin. If the coin toss results in heads, the random evaluator pays them $2. Conversely, if the coin toss results in tails, the random evaluator provides no payment, resulting in a payoff of $0.
Subjects who receive only high payments or only low payments from both evaluators will be redirected to a different survey with a similar expected payoff. Subjects who receive mixed payments will proceed with Part B.
In Part B, subjects can solve up to 25 decoding tasks and they can decide whether they want to continue or stop working after each decoding task. Subjects are paid by the same evaluator 1 from Part A. If evaluator 1 is the performance evaluator, they receive $0.1 for each correctly solved decoding task. If evaluator 1 is the random evaluator, they receive no payoff. Before starting the decoding tasks, we elicit subjects' beliefs about the likelihood that evaluator 1 is the performance evaluator.
The experiment concludes with a survey measure of risk aversion.