Experimental Design
The experimental design resembles that of Hedegaard and Tyran (2018), with an intermediate period of contact. Subjects will perform a real effort task individually for 12 minutes, with a piece-rate reward system. The task will be to stuff envelopes. Individual productivity will be recorded.
After this initial productivity measure, subjects will be randomly paired. Because we ensure that approximately 25% of the subjects in each session (3 subjects for a session of 12 people) are foreign, by design approximately 6 Japanese students will be allocated to the control group (paired with another Japanese student) and 3 will be allocated to the treatment group (paired with an international student).
The pairs will perform the same task as in the individual production for 12 minutes, except that pairs will be paid collectively, with a joint production function. Pairs will be encouraged to discuss during the contact phase.
After the intervention, all participants will answer a set of questions which will be used to measure their willingness to pay to discriminate (see outcomes).