Experimental Design
Participants are randomly assigned to groups of 5 players to play a lottery. Each player will also be assigned a color (blue or orange) which will affect the outcome of the lottery: If a player has been assigned the color blue, (s)he will win the lottery if (s)he decides to play. If a player has been assigned the color orange, s(he) will lose the lottery. The players have also the option to refuse to play the lottery, and save their potential payoff. Before the players decide to play or not play the lottery, the communicator provides information regarding the state of the world (either low or high probability of risk). Participants make individual decisions in the lottery. After the lottery, the players receive the information regarding their own outcome in the lottery and, in addtion, they can see how many players in their group have lost the lottery. The game will be repeated over 10 rounds.