Pablo Brañas-Garza María

Paz Espinosa

Pedro Rey-Biel
email: pedro.rey@uab.es

Jose Apest Eguia

Miguel A Ballest Er

Jordi Brandt

Vincent P Crawford

Teresa García

Ignacio Palacios-Huert

Albert Sat

Maria Paz Espinosa
email: mariapaz.espinosa@ehu.es

Travelers' Types

Keywords: JEL classi… cat ion: C72, C81, C91, D81. p

This paper uses subj ect s' diverse self-reported just i… cat ions to explain discrepancies between observed het erogeneous behavior and the unique equilibrium prediction in a one-shot traveler's dilemma experiment . Principal component s analysis suggest s t hat it erat ive reasoning, aspirat ion levels, compet itive behavior, at titudes t owards risk and penalties and focal points may be behind di¤erent choices. Such reasons are coherent wit h same subject s' behavior in ot her tests and experiments in which t hese particular issues are prominent , and t hus, we identify " types" of subjects. Overall, we conclude that subjects' self-j usti… cations in complex strategic sit uat ions We t hank

T he traveler's dilemma (T D) is one of the classic examples used to highlight discrepancies between the concept of rationality in Game T heory and the way real individuals take st rat egic decisions. A s such, its int uitive outcome and the game theoret ic predict ion do not coincide. It was … rst int roduced by Basu (1994) to point out t hat discrepancies between game t heoret ic reasoning and act ual behavior may not only occur due to problems wit h backwards induction, as it also may occur in single shot games. 1 The original formulation of the T D is as follows:

" Two travelers lose their luggage during a ‡ight. Each travelers' luggage contains exactly the same obj ect . To compensate for damages, t he airline manager asks each t raveler to independent ly make a claim for t he value of the lost object between and To discourage false claims, the manager o¤ers to pay each traveler the minimum of t he two claims, plus a reward of t o t he lowest claimant and minus a penalty of t o t he highest claimant."

All st andard game t heoret ic solution concepts predict that bot h players will select the lowest possible choice and thus, t he predict ed out come will be ( ). This is t he unique Nash equilibrium, the unique strict equilibrium, t he unique strong equilibrium and the only rat ionalizable equilibrium. Yet , it seems intuitive that subj ect s may play di¤erently since, for example, if t hey believe ot hers will make high claims, choosing higher s is bene… cial for bot h subj ect s. Previous experiment al evidence (Capra et al. 1999, Goeree and Holt 2001, Cabrera et al. 2007, Becchett i et al. 2009 and Basu et al. fort hcoming) shows t hat a signi… cant proport ion of experimental subjects 1 " T he t raveler's dilemma seems t o be one of t he purest embodiment s of t he paradox of rat ionality in game t heory, because it eschews all unnecessary feat ures, like play over t ime or t he nonst rict ness of t he equilibrium" . (Basu, 1994).

2

traveler' s dilemma, self-reports, pr incipal components, experiments. choose values which are higher than the equilibrium prediction and that the size of the penalty ( ) in ‡uences choices. In part icular, lower penalties are associated with higher choices. Becker et al. (2005) show t hat even a large proport ion of experts in Game Theory do not choose according t o the Nash predict ion when playing an anonymous electronic version of the T D among them. T herefore, ignorance on how to reason in game theoret ic t erms cannot be t he only reason behind t he observed het erogeneous choices in T D experiment s. Previous theoret ical att empt s have focused on explaining convergence t o the Nash prediction aft er repeated play in the TD. 2 Since in t his paper we are int erested in t he underlying motivations behind subj ect s' intuitive and het erogeneous choices, we focus on initial play.3 Rubinstein (2006), in a oneshot not rewarded T D experiment with an extensive sample, st udies subjects' time responses under the hypothesis that more cognit ive demanding choices take longer t o be t aken. Results con… rm t his hypot hesis, although most non-extreme choices remain unexplained. We t ake a complementary approach too understand het erogeneity in behavior.

I nt r oduct ion

In games where the equilibrium predict ion holds empirically, individuals' heterogeneity does not play a role. T hus, we focus on a game where players do not play according t o t he unique equilibrium prediction, the T D, and therefore t heir choices may reveal t he underlying motivat ions for strategic play. Our main interest in this paper is to use t he observed heterogeneity in behavior and in t he reasons behind such behavior in order t o check consistency among individuals' behavior across st rat egic and cognitive tasks. Our experiments with the T D can be considered as a … rst step in this line of research: what are the fact ors in ‡uencing behavior when t he Nash predict ion is not expect ed t o hold? We search for such fact ors in players' self-reported mot ivat ions and … nd that t he " type of player" (as de… ned by self-reports) predict s behavior in t he T D. We then see whet her t he identi… ed factors are informative for predict ing behavior in di¤erent sit uat ions. The factors we identify or even their relative weight should not be considered as the de… nit e fact ors determining behavior unt il more ext ensive research has been undert aken, because t hese fact ors or their relat ive weight could be in ‡uenced by the design. Furt her research should reveal whether ot her fact ors should be included A c c e p t e d M a n u s c r i p t to de… ne t he " type of player" and improve prediction.

We asked for subj ect s' self-report ed j usti… cations of their choices in a version of t he T D. This approach is similar t o Protocol Analysis, which has proven t o be successful in psychological studies. 4 However, a st ructured use of variables emerging from unpaid questionnaires is far from being st andard in economic experiments. 5 We … nd that not only choices in our T D are heterogeneous, but t hat alleged reasons behind t hose di¤erent choices in t he T D are also consist ently het erogeneous. Given such het erogeneity, the T D is an ideal candidate t o st udy di¤erent motivations behind subject s' experimental choices. We use independent research assistant s to codify subjects' self-report s int o variables and we t hen use principal component s analysis (PC) in order t o rationalize choices in the TD and classify subject s according t o their most prominently alleged reasons. We … nd that some classic experimental issues such as cognitive complexity, payo¤ aspirations, social preferences, risk and penalty aversion and focal points are closely relat ed t o alleged reasons in our TD experiment .

We also t ook independent measures of same subj ect s' personal charact eristics and behavior in ot her t asks and experiments. In particular and wit h respect to subject s' charact eristics, we considered subject s' scores in a GRE-type mat h test, subjects' selfevaluat ion in academic act ivit ies and gender. With respect t o experiment al measures, we obt ained how much t hey give in a dict at or game experiment and t heir choices when facing uncertainty in two di¤erent tasks. Given the int uit ive relat ionship between subject s' self-reported justi… cat ions in t he TD and t hese ot her measures, we check whether subj ect s prominently mot ivat ed by one part icular feature in t he T D also score high in the particular t ask or experiment designed t o check such feature. For example, we study whether subject s reporting more cognit ively complex reasoning procedures in t he TD score high in the GRE-type t est or whet her subject s using ant isocial just i… cations in the T D give less in dictator games. We obt ain coherent and consist ent relationships between both types of measures. Overall, we conclude t hat there exist s di¤erent types of subj ect s whose … rst int uitive responses t o a st rategic sit uation are driven by di¤erent motivat ions and that such mot ivat ions are relat ively consist ent across t asks. T herefore, we show t hat subj ect s' self-report in strat egically complex situat ions such as the TD contain informat ional value which can be useful t o predict behavior in other simple A c c e p t e d M a n u s c r i p t relat ed t asks and st rat egic situat ions. Basu et al. (fort hcoming) also used subject s' self report s in a traveler's dilemma experiment . They … nd a set of report ed strategies which up t o some point nicely correspond to our principal component s, although t he relative weight of each of t he alleged reasons di¤ers and they do not group st at ement s in principal components. T he research object ive of their paper di¤ers from ours, since Basu et al. (fort hcoming)'s main interest are the reasons behind choices in t he T D and they focus on how changes in the sizes of each subject 's penalty in ‡uence choices in the TD. Our paper aims at ident ifying types of players and on studying whether self-reports help predicting behavior in ot her tasks and experiment s.

The paper is organized as follows. Section 2 introduces the experimental design and describes subj ect s' choices in the T D. Sect ion 3 explains how principal component s (PCs) were ext ract ed from subject s' self-report ed comments. Section 4 shows how PCs explain subjects' choices in the T D. Sect ion 5 studies the relat ionship between PCs and subject s' choices in ot her tasks and experiment s. Section 6 concludes. Appendices available online include addit ional calculat ions (Appendix A ), inst ruct ions for t he T D experiment (Appendix B), inst ruct ions given to dat a codi… ers (A ppendix C) and descript ive st atistics not included in the paper (Appendix D).

T he complet e set of experiment al data reported in t his paper was collected during t he spring semester 2005 in several sessions with … rst year Economics st udents at Universidad de Granada (Spain). Subj ects were informed t hat t he number of experimental point s obt ained during each of the sessions in which t hey would part icipate cont ribut ed to their … nal grade in t heir M icroeconomics I course in the following way. Subjects belonged t o four di¤erent sect ions of around sixty subjects each. T he t ot al number of experiment al points obtained by a subj ect during t he course were added to determine his/ her posit ion wit hin his/ her sect ion's ranking. T he subject with t he highest number of experimental points added t hree ext ra grade point s (out of a maximum of ten) t o his/ her … nal grade. For each posit ion below, grade point s were calculat ed as a function of the distance from t he winner: 5 2 Exp er im ent al D esi gn, Pr ocedur es and R esult s where is t he distance from the winner. For example, a subject in t he tenth position in a a sect ion is at and t herefore earned grade points. Subj ect s were not informed of t heir performance and ot hers' performances in any of t he experiments and tasks unt il all experiments had concluded. 6 The sequence of experiments carried out by subjects was as follows: a dict ator game (M arch), a GRE-type mat h test (beginning of A pril), risk aversion experiments (end of A pril), and t he session detailed below containing four t asks (June). Dat a from all sessions were gathered and added to an ongoing database at Universidad de Granada which contains informat ion about subj ect s' behavior across experiments and their academic performance.

The … nal experimental sessions referred above (June) cont ained the t raveler's dilemma experiment and are t hus t he main focus of this paper. In these sessions subj ects performed four t asks: ) predict their relat ive performance in t he … nal Microeconomics I exam with respect t o ot her st udents in t heir class; ) decide between a binary lott ery and the out come of a 2x2 game in which they played; ) choose a number in a TD and give an explanat ion for t heir decision and ) predict t heir overall performance in the courses t aken during that term.

Experiment al procedures for these … nal sessions were as follows: Once in t he classroom and during the usual time slot for Microeconomics I, st udent s were handed instructions for the four t asks. T hey were asked t o perform the t asks in no particular order. Wit h respect to the TD, they were informed t hat t hey had been randomly matched with anot her st udent from t he same group. T hey were handed inst ruct ions and asked to choose a number in t he int erval t o which we will refer as their choice ( ). They were also asked t o volunt arily provide writ ten comments -on t he same answer sheet -on how they had reached t heir decision. A ft er one hour, student s handed back the answer sheets for all four tasks and left . Student s were informed about their performance in all experiment al sessions at t he end of the course and graded accordingly, once all experiment s had … nished. The T D was framed as two … rms competing in prices, such that t he content of t he experiment could be used to explain oligopolist ic compet it ion in subsequent Microeco- 6 Grade rewards were used in all experiment s carried out wit h t hese subj ect s. Administ rat ive and … nancial const raint s prevent ed us from using monet ary incent ives. Rubinst ein (2006) A c c e p t e d M a n u s c r i p t nomics courses. 7 Notice that at t he time of t he experiment , subj ect s had received no lect ures on oligopolistic competit ion nor on Game T heory. It is true that t he frame of … rms … xing prices may have not only a¤ect ed subjects' choices but also their reasoning process, and t hus t he reasons behind our results may not perfectly apply t o other experiment s with t he TD in which no frame or a di¤erent frame is used. In any case, result s below show t hat the dist ribut ion of het erogeneous choices was clearly similar to the usually obtained results in T D experiments wit h neut ral frame.

There were 243 subjects part icipating in t he experiment al sessions containing t he T D; 241 t urned in an answer for t he TD game, although three subject s answered wit h an int erval inst ead of a number so that t hese t hree observations were eliminat ed, leaving 238 valid observations of t he T D. There were two treatment s varying in t he size of the penalty in the TD. Students in t hree groups (184 subject s) were assigned to the t reat ment with penalty size , while st udents in t he fourth group (54 subj ect s) faced a penalty . 8

Figure 1 shows t he dist ribut ion of subj ect s' choices in the T D for the two penalty sizes.

Although a signi… cant percent age of subjects made Nash Equilibrium choices ( = 20), a higher proport ion of subjects in both treatments made di¤erent choices ( with , with ). The distribut ion of choices maintains t he same propert ies as previous experiment al tests of t he T D. 9 First , t here are choices all around t he interval. Second, t he dist ribut ion shows three peaks: t he Equilibrium prediction ( ), choices around t he average of the int erval ( ), and t he highest possible number (

). With respect to previous research, our distribution shows 7 T he game is similar t o a Bert rand duopoly in which … rms have t o choose prices from a given set . T he analogy is not perfect since in our game, t he … rm choosing t he lowest price does not sell t o t he whole market . However, it is su¢ cient ly close t o a duopoly model in which t here is some product di¤erent iat ion. I n any case, few subject s ment ioned t he market framing and subj ect s' explanat ions indicat e t hat t hey underst ood t he st rat egic sit uat ion t hey were facing. 8 Previous experiment s wit h t he T D show t hat t he Nash equilibrium is a relat ively bet t er predict ion wit h high incent ives (high ). Our highest penalt y ( 20) provides relat ively lower incent ives t han t he highest penalty in previous experiment s designed t o st udy how behavior changes wit h t he penalty size (Capra et al., 1999). We did so expect ing t o obt ain more het erogenous choices in t he T D. 9 Capra et al. (1999), Goeree and Holt (2001), Cabrera et al. (2007), Becker et al. (2005), Rubinst ein (2006 and 2007), Basu et al. (2008) the dist ribut ions under both penalty sizes shows that they are not st atistically di¤erent ( , ) and thus we conclude t hat the size of the penalty made no di¤erence. 11 T herefore, in the following we merge dat a wit h both penalty sizes.

In sum, as in previous experiments on t he TD, we observe a high percent age of non-equilibrium heterogeneous choices. In the following sect ion we turn to subject s' own explanat ions of t heir behavior to study whet her t here were also het erogeneous reasons driving these choices.

Our aim was t o use an independent , syst emat ic and j udgement-free method to codify in a standard response format the comment s voluntarily writt en by subj ect s aft er t hey had played the T D. We asked two independent research assist ants to help us in this task.

First , we st art ed by reading subj ect s' comment s. We de… ned t ernary variables taking values and referring to t he content in subjects' comment s and it s sign. If a subj ect 's comment did not cont ain any information on a part icular variable, such variable would t ake value zero, while it would t ake value if t he comment contained it and it s e¤ect went in one direct ion and if the comment contained it but it s e¤ect went in the opposit e direct ion. For example, t he variable would t ake value if the subject expressed that her decision was motivated t o avoid risk, while it would t ake value if it expressed that she was willing to take risks. T he variable would t ake value if risk was not mentioned. 12 Second, our two independent research assistant s (RAs) received inst ruct ions on how to codify subjects' comment s into variables. 13 RA s were not informed of the objective 10 Suet ens and Pot t ers (2007) review t he experiment al evidence on Bet rand duopoly and … nd t hat Bert rand produces more collusive behavior t han Cournot .

11 Capra et al. (1999) show changes in t he dist ribut ion when varying t he penalt y size, but penalty changes were much more pronounced (from 5 unit s t o 80 unit s, when choices could be made in t he int erval

). Rubinst ein (2006) uses a single hypot het ical $5 penalt y when choices are made in a int erval. 12 Variables and were binary (0 or 1), as it s cont ent could not t ake di¤erent direct ions. ). In any case, t he degree of agreement between both coders was relat ively high. Taking the average over the value of all original ternary variables for all subj ect s, both coders assigned t he same value ( , or ) t o of t hem. 16 Coders never disagreed on t he direction of t he original t ernary variables.

Once this information was collected, we duplicated the number of variables by transforming t he t ernary variables (0, 1 or 2) int o dummy variables (0 or 1) re ‡ecting the direction of t he comment that the variable capt ures. For example, t he variable , became two variables:

(1 if wanting t o avoid risk, 0 if it did not refer t o risk) and

(1 if want ing t o t ake risks, 0 if it did not refer to risk). 17

Our analysis below shows that t his codi… cation of subjects' self-reports proved useful in explaining subjects' choices in t he T D.

Table shows the percent age of subjects whose comment s were re ‡ect ed in our dummy variables ( ) at least according to one of the coders. T he table contains a brief descript ion of the meaning of the variables. Variables are classi… ed in … ve groups. T he names used t o describe these groups are only orientat ive and should help the reader, but they were never used in the analysis. 14 T he RAs hold a BSc in Physics (coder 1) and a BSc in M at hemat ics (coder 2). At t he t ime, t hey were enrolled in a PhD. program in Quant it at ive Finance.

15 Our met hods closely followed t he met hodology in Brandt s and Cooper (2007) and Cooper and Kagel (2005). 16 Maximum agreement was reached in variables and while minimum agreement occurred in variable . 17 De… nit ions for t he t ernary variables appear in t he I nst ruct ions for coders in Appendix C, and from t hem it is inmediat e t o obt ain t he dummy variables. REASONING refers to subject s' procedures t o reach t heir decision: whet her t hey wrot e calculat ions on t heir answer sheet s, used economic t heories t o help t hem make a decision, underst ood t he game or t hought they could reach a solut ion through logical reasoning.

ST RAT EGY refers to own decisions: choosing the middle of t he interval or one of the ext remes, undercutt ing the predicted rival's choices, or choosing (or not) a high value.

RIVALS refers t o beliefs about rivals' choices: whether they ment ioned a possible distribution for rivals' choices or had point beliefs, t hought t heir rival would choose a high value, a higher value than their own, et c.

INTERDEPENDENT PREFERENCES includes variables re ‡ecting equity considerations, appreciat ion for fairness or desire t o compete.

Variables which bot h coders thought were absent were eliminated. 18 Notice that no subj ect mentioned choosing a number due t o it being " an equilibrium" neither explicit equilibrium reasoning was found in subject s' comments. No individual mentioned imitating their rival. In contrast , some of them tried t o coordinat e -typically on .

There exists not able het erogeneity on t he explanations given by subj ect s for their choices in the TD. Some reasons were mentioned by a low percentage of subj ect s. We eliminat ed from t he following analysis those variables ment ioned by less t han 5% of the subjects. T his leaves us with t he 23 variables that appear with a sign in Table 1. 19 18 T his was t he case for variables , , , , , _ , _ , and . was eliminat ed for being redundant . 19 Qualit at ive result s form t he remaining of t he paper were maint ained when all variables were included in t he analysis. As it is frequently argued in protocol analysis, our variables may j ust be a subset of t he reasons t hat could have in ‡uenced subjects' choices. In any case, t here are a number of arguments which were prominent and syst emat ically repeated in subject s' , ) and they also expressed a desire to " win" ( ). A signi… cant proportion of subjects used mat hematical calculations to come up wit h a choice (

11 1 1 2 2 = 1 20 1 2 120 1 1 2 1 1 1 1 1 2 2 1 1 1 2 1 2 1 2 1 1 2 1 1 2 1 1 2 2 1 1
) and some of them ment ioned t he average of the interval ( ). A mong the most quoted st rat egies were eit her choosing low or intermediat e values and undercut ting rivals' choices ( , respectively). W it h respect t o opponents, many subj ects provided ). An alternat ive would have been to have let dat a decide which of t he two coders was more e¤ect ive and use only such coder's classi… cat ion. However, we favour having independent classi… cat ions and a measure of intensity.

Next we explain how we t urned t he index variables into Principal Components (PC).

20 T his may be part ially induced by using grade point s as rewards which depend on t he overall relat ive performance across all experiment s and t asks. A c c e p t e d M a n u s c r i p t

Pr i nci pal Com p onent s A nal ysis

Given t he nat ure and lengt h of our dat a set , t he use of PC analysis was nat ural: ) we were interested in summarizing the informat ion obtained t hrough codi… cation in a more tractable format ; and ) several variables may have conveyed t he same informat ion. For example, we were uncertain a priory about t he possible relationship between and .

The most salient features of PC analysis are precisely that ( ) it t he number of variables and ( ) it in t he relat ionships between them, i.e., it s according t o their content . We extract ed Principal Components explaining of the variance. 21 A ppendix A (available online) shows the mat rix of rot at ed component s with their saturation level.

Table shows the indexes associat ed to each of the PCs and their sat urat ion level. We ident i… ed which indexes are predominant in each new PC t hrough their sat uration level. Our select ion criteria was to assign each original index to t he component in which it shows it s highest value as long as t his value is clearly highest for one PC. 22 We assign an orient ative name to each of t he PCs (Name) and we brie ‡y remind t he content of t he indexes t hat form each PC (Explanat ion). T he last column shows t he scoring of each index in it s component and the direct ion of its participat ion (its sign). 21 We did not prede… ne t he number of ort hogonal component s, rat her we used as ext ract ion crit erion an eigenvalue higher t han 1 ( ); we also did not limit t he number of comput at ional it erat ions. To st udy t he signi… cance of each component , we rot at ed t he new variable using t he Varimax-Kaiser procedure. I nit ially we got nine component s including t hree wit h only one variable which did not cont ribut e much in t erms of int erpret at ion or explained variance. 22 As such, we expect these choices t o be spread along the int erval.

1 1 1 1 120 1 1 2 2 2 1 1 1 1 1 2 2 1 1 1 1 1 1 1 120 1 A c c
There are two important remarks concerning the interpret at ion of principal components:

24 Not ice t hat subj ect s scoring high in PC1 j ust ify t heir choices following a similar reasoning t o t he cognit ive level as de… ned by St ahl and Wilson (1994 and 1995). Few subject s just i… ed t heir choices using higher levels of it erat ive reasoning such as , since variables like and were rarely codi… ed. Regarding choice predictions, Figure 2 below shows that choice predict ions for subject s scoring high in each component were relat ively well ful… lled. Notice t hat PC3 and PC4 predict t he same choice as the unique Nash equilibrium of the T D. A lt hough people using equilibrium reasoning may be mot ivat ed by some of the variables contained in t his PCs, not ice t hat no subj ect justi… ed their choice with equilibrium arguments.

In the next section we check whet her the di¤erent types help us in predict ing choices in t he T D.

We now check coherence between subjects' comment s, summarized in t he PCs, and their choices. Given the indexes contained in each of the PCs we conj ect ure that: ) PC1( ) and PC2 ( ) have a posit ive impact on choices. ) PC3 (

), PC4 ( ) and PC6 ( ) have a negative impact. )

PC5 ( ) drives choices towards the average of the interval. Table 3 below shows the result of Tobit censored regression and a simultaneous quant ile regression (SQR) of each subj ect 's choice in the T D with the 6 principal components as regressors. In our TD, the posit ion of the choice along the distribution is not trivial. T herefore, a proper analysis by quantiles seems to be appropriate. The SQR technique est imates a regression for each quantile and produces a vector of correct ed errors (VCE) via boot st rapping, where t he VCE includes between-quantile blocks. T he interpret ation of the coe¢ cients of the QSR in table 3 are as in any regression model.

T he comparison between both estimations (t obit and SQR) shows coe¢ cient s of t he same sign and order of magnitude, which allows us to conclude that the information of t he dist ribut ion does not have import ant e¤ect s. P-values are equal to zero in all cases, apart from the coe¢ cient of PC5 which equals Figure 2 shows the di¤erences between actual and … t ted choices. Interestingly, low and int ermediate values are bet ter … t ted than high ones, which are underestimat ed.

We now identify di¤erent of subj ect s following t heir self-reported main motivation for t heir choices in the TD. For each subject, we counted t he number of indexes showing a posit ive value in each PC. We t hen assign each subj ect t o t he PC in which she scores highest . For example, according to our RAs, subj ect 3 scored a positive value in 4 of t he indexes cont ained in PC1 and 1 of t he indexes in PC5. We t hus classify subject 3 as PC1. Although there are several ties, we are able t o classify 144 subj ect s (60.5% of t he subj ect pool) using t his simple met hod. We focus only on these cases. Table 4 below reports the percentage of the 144 subj ect s classi… ed in each PC along with their average choice in t he TD and st andard deviations. Very few of these 144 subj ect s were classi… ed as PC2 and PC3. Notice t hat subj ects classi… ed in each PC make on average choices which are consistent with the int erpretat ion previously given t o each PC. High choices are t aken on average by subjects classi… ed as PC1 and PC2, which const it ut e around one t hird of the subj ect pool. Choices around the mean of the interval are taken on average by subj ect s classi… ed as PC5, which are almost one fourth of the subj ect s. Finally, low choices are made, as expect ed, by those subjects classi… ed as PC3, PC4, and PC6. 25 In t he following sect ion we check whet her t hese identi… ed types are consist ent wit h some of subjects' personal charact erist ics and their choices in independent t asks and experiment s.

T he following variables were obtained from t he same sample of subject s performing di¤erent t asks in the experimental sessions detailed in Sect ion 2. T he number of observat ions ( ) was not the same across tasks, as some individuals were absent from cert ain experimental sessions and some answers were erroneously reported in t he session containing the TD (June session).

We A variable in the int erval which re ‡ects the average degree of risk-aversion showed by individuals playing four di¤erent lot teries. 27 First we explore the correlations among t he variables regarding personal characterist ics toget her with t he Principal Components. Table 5 reports Pearson-tests among both types of variables. T he number in parenthesis indicat es p-values while t he number on brackets shows the number of observat ions available for each of the personal charact eristics. Numbers in bold indicate signi… cant coe¢ cient s at t he 10% level or bet ter. T he last line in the t able shows correlations between choices in the TD and personal charact eristics. 26 We creat ed t his variable because di¤erent groups played dict at or games wit h di¤erent init ial allocat ions. 27 As described in Brañas-Garza et al. (2008). analytical and cognitive abilit ies, and thus we may expect t hat subject s using more cognitively demanding j usti… cations for their T D choices may be t hose who score high in t he GRE-type math test. 28 Table 5 indicates t hat individuals' mat h abilities are positively correlated to . may capt ure how con… dent subjects feel about t heir abilit ies. Con-… dent subject s may t hus expect to obtain high payo¤s, and in part icular they may aspire t o a high payo¤ in t he T D. T herefore t he positive relat ionship observed between and ( ) was to be expect ed. Addit ionally, the negative correlation between and may indicate that con… dent subject s are not concerned about the st rat egic uncert ainty in t he TD, as t hey may feel assured t hey will obtain high payo¤s. We also observe some e¤ect s. In the TD, are more likely t o their rivals (

) and have higher ( ). On the contrary, women express more concerns about ( ) and t end to ment ion choosing values because of their proximity t o the of t he interval ( ).

Finally, we … nd t hat the analysis nicely extends to t he correlation between personal charact eristics and choices in t he T D. We … nd t hat and are positively correlated (at t he 10% level) wit h choices in t he TD, which may be explained by self-con… dent and optimistic subjects expect ing to obtain higher payo¤s in the T D and thus making high choices. Wit h respect to gender e¤ects, we … nd negative correlation between and choices in t he TD, which, as we explained below, may be due to higher risk aversion among women.. Now we check t he possible relat ionship between choices in di¤erent experiment s. T he heterogeneity observed in t he di¤erent j usti… cations of subjects' act ions in the T D, makes it an ideal candidat e to study t he translation of subj ect s' mot ivat ions across tasks. In such case, we would expect PCs t o be able to capture subject s' int rinsic motivat ions not only in T D but in ot her experimental tasks, and t hus there may exist an int rinsic component in de… ning , which may not be complet ely taskdependent . For example, we want to check whet her those individuals ment ioning risk concerns in the T D are those behaving as risk averse when facing lott eries. Table 6 report s regressions of dict at or game choices ( ), choices under uncertainty involving strat egic risk ( ), and lott ery choices ( ) on the six PCs obt ained from the T D. Therefore, we should observe signi… cant coe¢ cient s for those PCs capt uring t he most relevant feature for each t ask.

Not ice that t he translation of the motivations captured by PCs t o other tasks may not be perfect. For example, subj ect s in the T D may have ment ioned only a subset of the mot ivat ions driving t heir choices. However, we should expect t hat self-report s may reveal the most prominent mot ivat ion underlying T D choices, and t hus, our exercise may show meaningful result s. Table 6 shows that most of the signi… cant coe¢ cient s in our regressions have t he expected sign and are easy t o int erpret. Below we discuss t he signi… cant coe¢ cient s for each of t he PCs.

A c c e p t e d M a n u s c r i p t The most salient results appear in bold in Table 6. We now describe a possible interpret ation of the result s: First , subj ect s reporting their choices were mot ivat ed by a desire to avoid risks ( ) are precisely t hose who also avoided st rategic risk ( ). Consistent ly, they are also t hose who are more risk averse (

).

Second, subj ect s justifying t heir TD choices using argument s contained in (

) less prone to buy in lott eries ( ), which may be related t o t he fact t hat t hose who choose high values in t he TD may underestimate the risk of obt aining bad out comes. T his same behavior would lead t hem to buy less insurance in ot her uncertain sit uations such as lot teries.

Finally, Subj ect s mentioning argument s contained in ( ) aims t o obtain a high payo¤ in the TD. T his same behavior would lead them to keep everyt hing for themselves in dictator games ( Such subjects are also more prone t o buy insurance ( ), possibly also in order to maintain their payo¤s. We … nally performed regressions of t he dict at or game choice (

), the choice under uncertainty involving st rat egic risk ( ), and t he lott ery choices ( ) on the choice in t he T D. A lt hough coe¢ cient s have t he expected signs (positive for ( and negat ive for ), they are not st atis- A c c e p t e d M a n u s c r i p t T D. On the ot her had, the same choice in t he TD may be driven by several mot ivat ions which may not be re ‡ected in t he simples tasks and experiment s we are correlating them with (dict ator game, st rat egic risk and lot teries). T herefore, we should not expect that behavior would t ranslate across t asks as well as motivations do.

T his paper starts by providing reasons behind observed het erogeneous behavior in a part icular version of a one-shot traveler's dilemma experiment.

Our experiments were part of a larger t ournament competit ion among students used to mot ivat e learning during a Microeconomics course. T hus, we used a particular relat ive performance incentive structure and a particular frame (… rms … xing prices). Our version of t he TD maintains t he same t heoretical propert ies and a similar empirical dist ribut ion of heterogeneous choices as more standard versions of the TD. We use subj ect s' self-report ed just i… cat ions for their behavior and we … nd that their claims turn out to be coherent and consistent reasons for making di¤erent choices in t he T D.

Among the most prominent arguments, we … nd t hat di¤erent levels of st rat egic sophisticat ion, het erogeneous beliefs on opponents' choices, payo¤s aspirations, compet itive preferences, di¤erent degrees of risk and loss aversion and focal points such as t he average of t he interval are behind one-shot choices in our T D.

Although self-report ed explanat ions are obtained using no incentives and t hey may only be a subset of the possible reasons leading t o heterogeneous choices in the T D, we … nd that they are useful in understanding behavior. Thus, our paper is in line wit h recent experiment s using a variety of sources easily available in the laboratory t o obtain higher explanat ory power than relying only in choices made in the laborat ory. Similar recent approaches have successfully st udied subjects' sequence of payo¤ lookups to identify reasoning processes (Costa-Gomes and The t raveler's dilemma is an ideal game to study het erogeneous mot ivat ions behind behavior since the typical distribution of choices is het erogeneous. However, if we want to study how consist ent those mot ivat ions are across di¤erent t asks, using only t he act ions observed in a TD experiment might not be enough. T he reason is that we show 23 6 D i scussion A c c e p t e d M a n u s c r i p t that several di¤erent reasons may be behind the same T D choice. For example, we … nd several subj ect s choosing t he equilibrium st rat egy but none of t hem claim t o be using equilibrium reasoning. Thus, using self-reported j usti… cations we are not only able t o bet ter underst and choices in t he T D, but also to identify types of motivations behind such choices.

Our main cont ribut ion consist s in showing t hat some of such motivations are intrinsic t o subjects. T hus we observe that mot ivat ions are coherent with choices by t he same subj ect s in other t asks for which such mot ivat ions should be prominent. Although our result s are limit ed to t he number of tasks and experiment s available using t he same subj ect s, our paper is a … rst promising st ep towards identifying types of subjects in a given population. We have shown that it may be possible to predict subj ect s' behavior in di¤erent tasks using subjects' self-reported reasoning in ot her tasks. Further research aiming t o ident ify t he relationship between di¤erent types of individuals and their strategic behavior should follow. -0,065 0,013 -0,242 0,197 0,142 -0,021 -0,125 0,280 0,386 -0,351 0,302 -0,040 -0,048 0,098 0,076 -0,168 0,018 -0,068 0,208 0,014 -0,018 0,048 -0,422 0,024 -0,090 -0,143 -0,198 -0,075 0,068 0,092 0,309 0,244 -0,111 0,118 -0,018 0,124 -0,020 0,197 0,071 0,121 0,262 -0,006 0,089 -0,170 -0,046 -0,074 -0,126 -0,143 -0,108 -0,220 -0,308 -0,010 0,224 0,526 0,032 -0,010 -0,067 -0,048 0,099 0,053 0,105 0,114 0,021 -0,036 0,061 -0,086 -0,020 0,083 -0,120 -0,013 -0,115 -0,035 0,019 0,099 -0,066 0,002 0,145 0,017 -0,070 0,012 -0,344 -0,328 0,250 -0,077 0,040 0,160 0,042 -0,060 _ 0,260 -0,020 -0,131 -0,275 -0,097 0,023 0,018 0,050 -0,012 0,145 -0,010 -0,043 -0,124 -0,059 -0,055 0,175 0,030 -0,088 -0,111 -0,132 -0,132 -0,053 0,288 -0,164 0,071 The forms are in t he same order that the names in the Excel … le you will be working on. Please, st art by reading t he name of t he subj ect and his/ her comment . Next, move along the row corresponding t o that subject and … ll up t he cells you think should be … lled.

n Aspi Aspi L ow L ow 1 1 1 1 1 1 1 1 2 1 1 1 1 1 2 1 2 120 1 1 1 2 1 2 A c c
NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ID: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
You must use " ones" (1) and " twos" (2) to … ll up t he cells, according to t he explanation for each variable provided below. In t he cases in which t he subject's comments do not convey any information on a part icular variable, please do not change t he ent ry in t he corresponding cell (leave t he " zero" ).

Consider t he cells as independent: … lling up a cell wit h a number does not imply anything about t he number you enter in anot her cell.

A verageR V Explanat ion: " 1" if: " 2" if: Leave " 0" if: 20 W Explanat ion: " 1" if: " 2" if: Leave " 0" if: 120 X Explanat ion: " 1" if: " 2" if: Leave " 0" if: Coord Y Explanat ion: " 1" if: " 2" if: Leave " 0" if: W in Z Explanat ion: " 1" if: " 2" if: Leave " 0" if: A spi A A Explanat ion: " 1" if: " 2" if:
Says chooses a value for not being the average (above, below...) Does not ment ion choosing average value or not Rival / Rivals will choose average value Says rivals will probably choose/ on average an average value Says believes rivals will choose / probably/ on average another value

SUBJECTS' CHOICES IN THE TD AND SELF-REPORTS

The following is a transcription of subjects' responses in the Traveler's Dilemma. Subjects' identifiers have been eliminated to preserve anonymity. Transcripts have been ordered by the choice number. The English translation maintains subjects' informal style of writing.

Subjects responses

A c c e p t e d M a n u s c r i p t

Subject 1

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Puesto que el objetivo del experimento es competir, yo me he limitado a ello tratando de dejar a la otra empresa con cero puntos o bien dejarla con una puntuación igual a la mía. De esa forma yo nunca saldría perdiendo.

The price that I choose is: 20

You have this space for whatever you need:

Given that the objective of the experiment is to compete, this is what I have done, trying to leave to the other firm with zero points, or leave it with a number equal to mine. That way I will never lose. Yo elijo el precio de 20 porque la otra empresa no podrá poner un precio más abajo, ya que el intervalo es de (20, 120) y así no me penaliza y tengo más probabilidad que la otra empresa siempre esté por encima o igual que yo y siempre ganaré algo.

The price that I choose is: 20

You have this space for whatever you need:

I choose 20 because the other firm cannot set a lower price, given that the interval is (20, 120), in this way I avoid the penalty and I have more probabilities that the other firm will always be higher or equal than me so that I will always win something.

A c c e p t e d M a n u s c r i p t

Subject 4

El precio que yo elijo es: 20 Tienes este espacio para lo que necesites:

Porque tendré 20 seguros, porque la empresa contraria no podrá fijar un precio menor y ella siempre perderá.

The price that I choose is: 20

You have this space for whatever you need:

Because I will have 20 for sure, the other firm cannot set a lower price and will always lose.

A c c e p t e d M a n u s c r i p t

Subject 5

El precio que yo elijo es: 20 Tienes este espacio para lo que necesites:

Porque poniendo 20 me aseguro de que la primera regla no ocurra.

Porque en la segunda regla gano yo

Porque en la tercera regla tengo 20 seguros.

The price that I choose is: 20

You have this space for whatever you need:

Because by setting 20 I will be sure that rule 1 will never occur.

Because in the second rule I win

Because in the third rule I have 20 for sure.

A c c e p t e d M a n u s c r i p t

Subject 6

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Si pongo el precio mínimo de 20 no podre recibir penalización de 20 puntos, optando a recibir la recompensa o simplemente obteniendo los dos los mismos puntos en el caso de que coincidamos.

The price that I choose is: 20

You have this space for whatever you need:

If I set the minimum price of 20 I will not get the penalty of 20 points, opting to receive the reward or simply getting both of us the same points in the case that we coincide.

A c c e p t e d M a n u s c r i p t

Subject 7

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Mi decisión ha sido de 20 porque supongo que la otra empresa tendrá un mayor precio, en el caso contrario los dos ganamos.

The price that I choose is: 20

You have this space for whatever you need:

My decision has been 20 because I guess the other firm will set a higher price. Otherwise, both of us will win.

A c c e p t e d M a n u s c r i p t

Subject 8

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Si fijo el precio minino nunca perderé puntos sino que me quedare con los mismos o ganaré.

The price that I choose is: 20

You have this space for whatever you need:

If I set the minimum price I will never lose points, either I will keep the same number of points or I will win.

A c c e p t e d M a n u s c r i p t Subject 9

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Pongo lo mínimo porque así no puedo perder nada, solamente puede ganar el precio que he fijado como poco y si pongo uno mayor que mi pareja puedo perder 20 puntos.

The price that I choose is: 20

You have this space for whatever you need:

I set the minimum because in this way I will not lose anything, the only winner price is the one that I set and if I set a higher price than my partner I can lose 20 points.

A c c e p t e d M a n u s c r i p t Subject 10

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Elijo este precio o precio mínimo porque no es posible que la otra empresa elija una puntuación inferior por tanto no pierdo puntos. En caso de que fuera igual la puntuación estaría ganando el número completo de puntos elegidos.

The price that I choose is: 20

You have this space for whatever you need:

I choose this price, the minimum one, because it is not possible that the other firm chooses a lower number, therefore I don't lose points. In the case we have the same number I would be winning the entire number of chosen points. He fijado 20 puntos porque no puede haber un número menor a ese, por lo tanto como mínimo voy a empatar y conseguir 20 puntos.

The price that I choose is: 20

You have this space for whatever you need:

I have set 20 points because there is no number lower than this, so that at least there will be a tie and I will get 20 points. The price that I choose is: 20

You have this space for whatever you need:

I have chosen this price because in this way I make sure that she chooses a price higher or equal than mine and I don't lose. I don't take risks, I will win little but I will win for sure. Porque en este caso si la otra empresa pone un precio menor puedo ganar algo (a no ser que la otra ponga 20). Y si pone un precio mayor yo puedo ganar más. Además la otra empresa no puede poner u precio menor por lo que no pierdo nada.

The price that I choose is: 20

You have this space for whatever you need:

Because in this case if the other firm sets a lower price I win something (unless the other firm sets 20). And if the other firm sets a higher price, I can win even more. Besides, the other firm cannot set a lower price so that I don't lose anything. El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

He fijado ese precio, ya que es el más bajo, de esta forma la otra empresa nunca podrá ganarme, ya que no puede fijar un precio más bajo como mucho podrá igualarme, aunque perdería puntos si los dos fijamos el mismo precio.

The price that I choose is: 20

You have this space for whatever you need:

I have set this price, because it is the lowest, in this way the other firm never will win, because this firm cannot set a lower price, at most it can be equal to mine, although we both lose if we set the same price. He elegido la cantidad de 20 porque por debajo de esta ya no hay más y por tanto mi cantidad siempre será menor o igual que la del otro sujeto y por tanto, mi cantidad nunca será mayor que la del individuo y como consecuencia de esto, yo no seré penalizada.

The price that I choose is: 20

You have this space for whatever you need:

I have chosen the quantity of 20 because under this number there is nothing else, then my quantity will always be lower or equal to the other's quantity and therefore my quantity will never be higher than the other's one and as consequence I will not get the penalty. Elijo el precio más bajo ya que de esta forma la otra empresa elegirá precios mayores y nunca seré penalizado, y si elige la misma tampoco.

The price that I choose is: 20

You have this space for whatever you need:

I choose the lowest price because in this way the other firm will choose higher prices and I will never get the penalty even if the other firm chooses the same.

A c c e p t e d M a n u s c r i p t

Subject 24

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

He elegido este precio porque es el menor y aquí no pierdo nada, me aseguro unos puntos, los cuales pueden ser mas de 20 ya que la otra empresa ha podido elegir un precio mayor, o simplemente 20 porque ambos hayamos elegido lo mismo.

The price that I choose is: 20

You have this space for whatever you need:

I have chosen this price because is the lowest one, here I don't lose anything, I win some points for sure, they might be even more than 20 because the other firm might have chosen a higher price, or simply win 20 because we both choose the same price. He puesto 20 ya que la posibilidad de que mi rival ponga un número más alto que el mío es alta. Pero también cabe la posibilidad de que ponga él/ella también 20 y así ninguno perdería. Si yo pusiera un número mayor la posibilidad de que me quitaran 20 puntos seria mayor. Así que prefiero que se los quiten a él/ella o nos los den a ambos.

The price that I choose is: 20

You have this space for whatever you need:

I have set 20 because the chance that my rival sets a higher number is high. Also there is a chance that he chooses 20 in this way no one will lose. If I set a higher number the chance of losing 20 points would be higher. That is why I prefer that he loses the 20 points or we both get them.

A c c e p t e d M a n u s c r i p t

Subject 26

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Yo elijo el precio de 20 ya que así con el precio menor obtengo 20 puntos y ella mi precio mas la penalización con lo que no obtiene nada.

The price that I choose is: 20

You have this space for whatever you need:

I choose the price of 20 because with the lowest price I get 20 points and she will get my price plus the penalty, then she will get nothing.

A c c e p t e d M a n u s c r i p t Subject 27

El precio que yo elijo es: 20

Tienes este espacio para lo que necesites:

Yo elijo este precio porque debido a que no conozco el otro precio y no se la otra persona se arriesgue. La única manera de obtener una buena puntuación es con el menor precio.

The price that I choose is: 20

You have this space for whatever you need: He elegido este precio porque en mi cuenta de puntos me faltan más o menos estos puntos y como son fijos me da igual lo que ponga el otro, si pone más me llevaré la bonificación de 20 puntos más.

I

The price that I choose is: 20

You have this space for whatever you need:

I have chosen this price because counting the points, this is moreless the quantity that I need, since these points are for sure I don't care about the other's decision, if he chooses a higher number I will receive 20 points more.

A c c e p t e d M a n u s c r i p t Subject 35

El precio que yo elijo es: 20 Tienes este espacio para lo que necesites: Pienso que con este precio es la única posibilidad de que compitiendo pueda obtener puntos seguros, además no tengo ningún conocimiento de cómo pueda actuar mi empresa rival y prefiero no probar con probabilidades.

The price that I choose is: 20

You have this space for whatever you need:

I think that with this price I have the unique chance to get points for sure competing, besides I don't know anything about mi rival's decision, so that I prefer not to play with probabilities. Yo he elegido este precio porque nunca perdería y conociendo a los demás, ninguno pondrá más de 20.

The price that I choose is: 20

You have this space for whatever you need:

I have chosen this price because I would never lose and knowing the others no one of them will set a price higher than 20.

A c c e p t e d M a n u s c r i p t Subject 39

El precio que yo elijo es: 20 Tienes este espacio para lo que necesites:

Con un precio de 20 me aseguro que: Ambos sacamos el mismo precio, ella gana 20, yo gano 20. La otra empresa elige un precio mayor, yo gano 40, ella cero. Siempre voy a ganar igual o más que la otra empresa.

The price that I choose is: 20

You have this space for whatever you need:

With a price of 20 I will make sure that: If we both choose the same price, she wins 20, I win 20. If the other firm chooses a higher price, I win 40, she wins cero. I will always win equal or higher than the other firm. He elegido 20 porque así me aseguro ganar como mínimo 20 puntos, ya que si pongo un precio mayor y el pone de precio 20, yo gano cero puntos.

The price that I choose is: 20

You have this space for whatever you need:

I have chosen 20 because I will have for sure at least 20 points, because if I decide a higher price, and he decides a price of 20, I will win zero points.

A c c e p t e d M a n u s c r i p t

The price that I choose is: 20

You have this space for whatever you need:

Because in this way my price will always be smaller or equal to her price and I will always win without penalty. Elijo 20 porque pienso que la otra empresa ha fijado, lo más seguro, considero que si elijo yo un precio superior a 20 voy a tener mala suerte y obtendré una puntuación muy mala.

The price that I choose is: 20

You have this space for whatever you need:

I choose 20 because I think that this is most probably the price that the other firm has chosen. I think that if I choose a price higher than 20 I will have bad luck and I will have a very bad number. Elijo 20 para asegurarme 20 puntos, puesto que el otro puede poner como mínimo eso.

Porque si por ejemplo pongo 30 y la persona con que compito pone 20, no gano ningún punto. Ya que lo que ha fijado menos la penalización seria 20 puntos para mí.

The price that I choose is: 20

You have this space for whatever you need: De esta forma, eligiendo 20, la otra empresa no puede fijar un precio menor y no tendré penalización. Su precio será 20 o superior, así que siempre tendré beneficio.

I

The price that I choose is: 20

You have this space for whatever you need:

In this way, choosing 20, the other firm cannot set a lower price and I will not have any penalty. Its price will be 20 or higher, so I will always have positive profits. Así me aseguro 120 puntos que nos llevaríamos los dos al no poder elegir un precio menor.

The price that I choose is: 20

You have this space for whatever you need:

In this way I will make sure I get 120 points, and so both os us will get that since we cannot choose lower prices. Si yo compito con otra empresa, yo pondré un precio bajo para que así me compren el bien a mí. Creo que a lo mejor a otro precio yo no tengo muchos beneficios, pero a este precio, ella no podrá competir conmigo y quebrará. Yo le hago undercutting.

The price that I choose is: 20

You have this space for whatever you need:

If I compete with another firm, I will set a lower price, thus everybody will buy my product. I think that at a different price from this one I will not make profits, at this price, she will not be able to compete with me and she will go bankrupt. I will undercut him.

A c c e p t e d M a n u s c r i p t Subject 56

El precio que yo elijo es: 20 Tienes este espacio para lo que necesites:

He puesto un precio de 20 porque es el precio más bajo y de esta manera yo ganaría 20 más 5 y la otra empresa ganaría 20 menos 5 de penalización, en el caso en que fuese mayor o en el peor de los casos, los dos ganaríamos 20. Por lo tanto yo no saldría perdiendo.

The price that I choose is: 20

You have this space for whatever you need:

I have set a price of 20 because is the lowest price and in this way I would win 20 plus 5 and the other firm would win 20 minus 5 of penalty, in the case of a higher price than 20 or at the worst case we both would win 20. Thus I would not lose. He elegido 20 que es el precio mínimo para que las posibilidades de que la otra empresa fije un precio más alto sean máximas, así ganaré 5 puntos más que mi competidor.

The price that I choose is: 20

You have this space for whatever you need:

I have chosen 20 which is the minimum price in order to increase the possibilities of the other firm of setting maximum prices, thus I will win 5 points more than my rival. Pongo 20, porque sé que así con probabilidad 1 gano 20 y con una gran probabilidad le quitaré 5 puntos y yo ganaré 10 puntos más, pienso que es muy probable que le gane.

The price that I choose is: 20

You have this space for whatever you need:

I set 20, because I know that with probability 1 I win 20 points and with a high probability I can take 5 points from him, I think is highly probable that I win. Elijo el precio mínimo 20, porque así en el peor de los casos me quedaría con 20 puntos, y como tengo el precio mínimo gano 5 puntos más.

The price that I choose is: 20

You have this space for whatever you need: Coincidir con el otro participante (empresa rival), es difícil, así que pensando egoístamente, voy a escoger un número pequeño. Lo justo sería que los dos nos lleváramos lo mismo ya que ambos tenemos la misma idea de la prueba.

I

The price that I choose is: 20

You have this space for whatever you need:

To coincide with other participant (the rival firm) is hard, thus thinking selfishly I am going to choose a small number. The fair situation would be both of us winning the same, since we both know the same about the task. He elegido el precio de 20 ya que prefiero llevarme una renta segura y en caso de que la competidora fijara el mismo precio pues nos llevaríamos la misma renta. Pero también cabe la posibilidad de que la competidora fije un precio un poquito más alto y me lleve 5 puntos de más y ella quede con 15.

The price that I choose is: 20

You have this space for whatever you need:

I have chosen the price of 20 because I prefer to have a secure income and in the case that my rival sets the same price we would get the same income. But there is a chance that my rival sets a price a little bit higher and wins 5 points more than me, my rival would get 15. Elijo el mínimo ya que si me expongo a que si mi pareja pone un número menor puedo perder (dejar de ganar) puntos. Si supiera quién es mi pareja hablaría con él para que ambos pudiéramos poner 120.

The price that I choose is: 20

You have this space for whatever you need: He puesto ese precio para no arriesgarme. Si pongo un precio mayor me arriesgo a que la otra empresa ponga un precio menor, y me penalicen. De esta forma no me arriesgo y solo pueden haber dos posibilidades: Que la otra empresa tenga un precio mayor, entonces yo gano, o que ponga el mismo precio, es decir, no ganamos ninguno de los dos, no es bueno, pero siempre es mejor que perder.

I

The price that I choose is: 20

You have this space for whatever you need:

I have set this price to avoid risks. If I set a higher price I take risks, and if the other firm sets a lower price, I would get the penalty. By doing this I don't take risks, and there would be two possibilities: The other firm sets a higher price, then I win, or we can set the same price, that is, no one wins, it is not good, but it is better than lose. Yo creo que es un precio bajo, pero me permite asegurarme con mayor probabilidad mas puntos.

The price that I choose is: 30

You have this space for whatever you need:

I think this is a low price, but this allows me to make sure with a higher probability a higher amount of points.

A c c e p t e d M a n u s c r i p t Subject 77

El precio que yo elijo es: 30

Tienes este espacio para lo que necesites:

He hecho una simulación y este es el más restable, además tengo en cuenta que la gente elegirá números bajos.

The price that I choose is: 30

You have this space for whatever you need:

I have done a simulation and this is the most profitable, besides I take into account that people will choose low numbers. Elijo este precio porque es un precio que esta más o menos en la mitad del intervalo por lo cual la otra empresa no va a fijar un precio menor porque no obtiene beneficios ni tampoco va a elegir el mayor precio porque todos sus clientes se irían a la otra empresa y no existiría aquí la competencia. El propósito de fijar este precio medio es que la otra empresa fijará uno que se aleje o que se acerque pero de manera que pueda existir la competencia entre ambos.

The price that I choose is: 40

You have this space for whatever you need:

I choose this price because it is located more or less in the middle of the interval, thus the other firm is not going to set a lower price because it will not make profits, and this firm is not going to choose the highest price because all its clients would choose another firm and there would not be competition. The purpose of setting this middle price is making the other firm choose a price near or far to my price in such a way there is competition between us.

A c c e p t e d M a n u s c r i p t

Subject 82

El precio que yo elijo es: 40

Tienes este espacio para lo que necesites:

El precio que elijo es 40 porque al elegir un precio bajo, tengo más probabilidad de ganar lo que yo he fijado mas la recompensa, y si el otro fija un precio más bajo que el mío, yo sigo ganando el precio que he fijado. Probablemente, los demás elegirán también precios bajos para que los que compitan con ellos no salgan ganando.

The price that I choose is: 40

You have this space for whatever you need:

The price that I choose is 40 because by choosing a low price, I have a higher probability of winning my set price plus the reward, and if the other one sets a price lower than mine, I still win the set price. Probably, the rest of the people will choose low prices as well in order to make their rival lose. Escojo un precio bajo, ya que la otra empresa tendrá un precio mayor que 30, por lo que yo ganaré lo fijado y la recompensa. En el caso de que sea inferior no tendré resultado negativo.

The price that I choose is: 40

You have this space for whatever you need:

I choose a low price, because the other firm will set a price higher than 30, thus I will win the set price and the reward. In case that the other firm chooses a lower price I will not have a negative result. Al elegir un precio muy poco por encima del mínimo, me llevare algunos puntos más la bonificación de 20 puntos, pues pienso que la otra empresa elegirá un precio más alto, para en caso de ganar llevarse más puntos.

The price that I choose is: 40

You have this space for whatever you need:

By choosing a price a little bit higher than the minimum I will win some extra points and the reward of 20 points, I think that the other firm will choose a higher price, so that in such case it will win more points. Puesto que el precio mínimo es 20, tienes más probabilidad de ganar que poniendo un precio más alto y que la otra empresa lo haya bajado tanto que te gane a ti. Pero de esta manera con un precio más pequeño tienes más probabilidad de ganar pero también ganas pocos puntos.

Lo que yo pienso es poner un precio equilibrado tirando un poco a la baja para tener más posibilidades de ganar y coger un número razonable de puntos.

The price that I choose is: 42

You have this space for whatever you need:

Since the minimum price is 20, you have a higher probability of winning than setting a higher price. But in this way, with a low price you have a higher probability of winning but you will win few points. What I think is that by setting a balanced price tending to be a low one you have more chances of winning and getting a reasonable number of points. He elegido el precio de 50 porque si competimos tengo más probabilidades de ganar ya que es un precio bajo.

The price that I choose is: 50

You have this space for whatever you need:

I have chosen a price of 50 because if we are competing I have higher probabilities of winning because it is a low price.

A c c e p t e d M a n u s c r i p t Subject 96

El precio que yo elijo es: 50

Tienes este espacio para lo que necesites:

He elegido una puntuación de 50 porque si su precio es menor voy a perder lo mismo elija lo que elija pero si es mayor, cuanto menor sea mi elección más ganaré.

The price that I choose is: 50

You have this space for whatever you need:

I have chosen a number of 50 because if his price is lower I will lose, the lower mi choice is, the more I win.

A c c e p t e d M a n u s c r i p t Subject 98

El precio que yo elijo es: 50

Tienes este espacio para lo que necesites:

Porque está por debajo de la media y hay más posibilidades de ganar, aunque hay números más bajos, pero en caso de que ponga un número muy bajo y gane, no obtendría ningún beneficio, prefiero arriesgarme un poco más.

The price that I choose is: 50

You have this space for whatever you need:

Because this number is smaller than the average and there are more probabilities of winning, though there are smaller numbers, but in case that he sets a smaller number and wins, would not get profits, I prefer to risk myself.

A c c e p t e d M a n u s c r i p t

Subject 99

El precio que yo elijo es: 50

Tienes este espacio para lo que necesites:

He elegido este precio porque poniendo precios altos tengo la probabilidad de perder y bajos también. Mas o menos 50 es un intervalo medio.

The price that I choose is: 50

You have this space for whatever you need:

I have chosen this price because by setting high prices I have chances of losing as well that by setting low prices. More or less 60 is a mean interval.

A c c e p t e d M a n u s c r i p t

SUBJECT 102

El precio que yo elijo es: 50

Tienes este espacio para lo que necesites:

Elijo 50 porque creo que la otra persona fijará un precio que no sea muy alto

The price that I choose is: 50

You have this space for whatever you need:

I choose 50 because the other person will choose a not very high price.

A c c e p t e d M a n u s c r i p t

SUBJECT 103

El precio que yo elijo es: 55

Tienes este espacio para lo que necesites:

¿Por qué este precio? Dado 120 como el precio posible mas alto a dar, he decidido poner un poco menos que la mitad de ese precio (120) ya que lo más seguro que la otra persona contra la que rivalice querrá ganar el mayor precio posible y pondrá un precio mayor que el mío, de esa manera le hago un "undercutting" y me llevo el mercado (y ganaría los 5 puntos extras). Lo que está claro es que si pongo mi precio en 20 ganaría a no ser que mi rival pusiera 20, pero quiero ganar más de 20.

The price that I choose is: 55

You have this space for whatever you need:

Why this price? Since the highest possible price is 120, I have decided a little bit less than the half that price (120), the most probable situation is that my rival wants to win the highest price available and he will set a price higher than mine, in this way I would be making him an "undercutting" and the whole market would be mine (and I would win the 5 extra points). It is clear that if I set the price at 20 I would win, unless my rival sets 20, but I want to win more than 20.

A c c e p t e d M a n u s c r i p t

SUBJECT 104

El precio que yo elijo es: 55

Tienes este espacio para lo que necesites:

He elegido el precio de 55, como es término medio, ya que creo que la otra empresa no cogerá un precio mayor que este.

The price that I choose is: 55

You have this space for whatever you need:

I have chosen 55, because it is a middle number, since I believe that the other firm is not going to choose a price higher than this.

A c c e p t e d M a n u s c r i p t

SUBJECT 105

El precio que yo elijo es: 59

Tienes este espacio para lo que necesites:

Elijo un precio que se encuentre en la mitad del intervalo más o menos, teniendo en cuenta que mi competidor elegirá un precio no muy alto ya que si pone un precio elevado perderá clientes y yo me quedare con el mercado.

The price that I choose is: 59

You have this space for whatever you need:

I choose a price located more or less in the middle of the interval, taking into account that my rival will not choose a high price, because if he sets a high price he will lose his clients and I will get the whole market.

A c c e p t e d M a n u s c r i p t

SUBJECT 106

El precio que yo elijo es: 59

Tienes este espacio para lo que necesites:

Es la mitad menos uno. Supuestamente los precios deberían rondar la mitad (60).

The price that I choose is: 59

You have this space for whatever you need: This is the middle minus one. Supposedly prices should be around the half (60).

A c c e p t e d M a n u s c r i p t

SUBJECT 107

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Elijo ese precio porque aunque juego para arriesgarme, no juego a perder todo sino a ganar algo aunque sea menos.

The price that I choose is: 60

You have this space for whatever you need:

I choose this price because even though I play to risk a little, I do not play to lose everything, I play to win something though may be less.

A c c e p t e d M a n u s c r i p t

SUBJECT 108

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

He elegido este precio porque es un precio ni muy alto ni muy bajo. Pienso que casi todos van a poner un precio alto porque siempre se piensa que ganamos más si pones un precio alto pero yo he decidido por algo más bajo, así cuando ellos fijen un precio más grande yo tendré una recompensa.

The price that I choose is: 60

You have this space for whatever you need:

I have chosen this price because it is neither too high nor too low. I think most of the people are going to set high prices because we tend to think that the higher the price the more we win, but I have decided something lower, thus when they set a higher price, I will win the reward.

A c c e p t e d M a n u s c r i p t

SUBJECT 109

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

The price that I choose is: 60

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 111

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Lo he elegido porque pienso que, el otro, va a elegir un precio menor, así yo obtendré 80, y la empresa 40.

The price that I choose is: 60

You have this space for whatever you need:

I have chosen it because I think that the other one is going to choose a lower price, thus I will win 80 and the other one 40.

A c c e p t e d M a n u s c r i p t

SUBJECT 112

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

He elegido este precio porque lo veo el más conveniente para competir con esta empresa.

The price that I choose is: 60

You have this space for whatever you need:

I have chosen this price because I think is the most convenient to compete with this firm.

A c c e p t e d M a n u s c r i p t

SUBJECT 113

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

The price that I choose is: 60

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 114

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

He fijado un precio de 60 porque lo considero la opción más equilibrada.

The price that I choose is: 60

You have this space for whatever you need:

I have set 60becuase I think this is the most balanced choice.

A c c e p t e d M a n u s c r i p t

SUBJECT 115

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Si el otro participante quiere ganar puntos pondrá un precio alto que será mayor al mío por lo tanto ganaré yo. Si elige un precio menor también ganaré lo que ella haya puesto.

The price that I choose is: 60

You have this space for whatever you need:

If the other participant wants to win points she will set a high price, higher than mine, thus I will win. If he chooses a low price I will win whatever she has set too.

A c c e p t e d M a n u s c r i p t

SUBJECT 116

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Al poner este precio estoy intentando tener un precio inferior al de mi competidor, pero sin poner precios excesivamente bajos porque entonces ganaría seguro pero poco.

The price that I choose is: 60

You have this space for whatever you need:

By setting this price I am trying to set a price lower than my rival's, but without setting a very low price, because in that case I would win for sure but little.

A c c e p t e d M a n u s c r i p t

SUBJECT 117

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

He elegido un precio de 60, porque la media del intervalo esta en 70y mi pareja probablemente fije ese precio (más o menos) yo prefiero quedarme un poco por debajo para que la penalización se para mi pareja.

The price that I choose is: 60

You have this space for whatever you need:

I have chosen 60, because the average of the interval is 70 and my partner will probably set that price (more or less). I prefer to stay under to make him get the penalty.

A c c e p t e d M a n u s c r i p t

SUBJECT 120

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Voy a elegir 60 ya que es la mitad del precio mayor y si mi pareja elige un precio mayor yo gano 60+20 de recompensa que sería 80 que ya es más de la mitad.

The price that I choose is: 60

You have this space for whatever you need:

I am going to choose 60 because is half of the highest price and if my partner chooses a higher price then I win 60+20 of reward which sums 80 and this is more than the half.

A c c e p t e d M a n u s c r i p t

SUBJECT 121

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

He elegido este precio porque es un precio medio y si gano tendría 80 puntos y si pierdo no perdería mucho ya que si el otro compañero pone un precio menor, no habría mucha diferencia.

The price that I choose is: 60

You have this space for whatever you need:

I have chosen this price because is the average price and if I win I would win 80 points and if I lose I would not lose so much, if my partner sets a lower price, there would not be a big difference.

A c c e p t e d M a n u s c r i p t

SUBJECT 122

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Al depender completamente de la elección de la competencia es imposible realizar una elección lógica.

The price that I choose is: 60

You have this space for whatever you need:

Since I depend completely on the rival's choice it is impossible to take a logic decision.

A c c e p t e d M a n u s c r i p t

SUBJECT 123

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Yo me sitúo en la frontera, que es la media 70 y considero que la gran mayoría de rivales son adversos al riesgo y van a determinar un precio bajo, ante el temor de que su precio sean mayor y sean penalizados. Por ello me voy a situar en 10 por debajo de la media (60) y si ella/el pone la media 70 yo le gano a el, mas bajo no podría y como mínimo igual y rara vez llegaría 100 que es cuando empezará a ganarme. Yo creo que con esta estrategia gano.

The price that I choose is: 60

You have this space for whatever you need:

I set a price in the border, the average value is 70 and I think that the majority is risk averse and they are going to set a low price, because they are afraid of being penalized. That is why I am going to set the price 10 points under the average (60) and if he/she sets 70 I will win, he could not set a lower price than me, thisthe most it could be equal to mine and it seldom could reach 100 because at this price he would start winning. I think I will win with this strategy.

A c c e p t e d M a n u s c r i p t

SUBJECT 124

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Mi estrategia ha sido dejar actuar a la otra empresa libremente para que elija precios mayores y yo asegurar mi decisión.

The price that I choose is: 60

You have this space for whatever you need:

My strategy has been let the other act freely to choose higher prices and I take a risk-free decision.

A c c e p t e d M a n u s c r i p t

SUBJECT 125

El precio que yo elijo es: 64

Tienes este espacio para lo que necesites:

La razón por la que he tomado 64 es porque el gran porcentaje se aproximará al 65 y al 70, (es lo primero que me ha venido a mí), la razón por la que he tomado el 64, es para estar por esa supuesta media.

The price that I choose is: 64

You have this space for whatever you need:

The reason for choosing 64 is because a big proportion will choose close to 65 and 70, (is the first think I have though), the reason for choosing 64, is to be close to that so-called mean.

A c c e p t e d M a n u s c r i p t

SUBJECT 127

El precio que yo elijo es: 65

Tienes este espacio para lo que necesites:

He puesto este precio, porque se trata de obtener una mayor puntuación a través de un precio bajo (menor al de mi rival). Por eso, pienso que la otra empresa también optará por un precio poco elevado para asegurar beneficios. Si fuese al azar hubiera arriesgado más, pero al competir directamente con el rival es preferible asegurar, aunque sé que tampoco es muy seguro. Además también escogiendo un precio muy elevado se puede ganar.

The price that I choose is: 65

You have this space for whatever you need:

I have set this price because this is all about getting a higher number by choosing a low price (lower than my rival´s price). That is why I think the other firm will choose a price not too high to make sure profits. If this was a random process I had risked more, but this is not too safe. Besides by choosing a very high price it is possible to win. Si se compite tendría que ser un producto homogéneo, con lo cual, debería de ser un mismo precio para las dos empresas. Yo creo que lo más lógico sería hacer la media de los precios [20, 120] que seria 50. A este resultado se le suma 20 para que el precio este situado en medio de los dos precios anteriores. Lo más lógico sería fijar un precio de 70, pero para conseguir algún beneficio más que mi competidor, yo le pongo el precio de 69.

The price that I choose is: 69

You have this space for whatever you need:

If we are competing it has to be a homogeneous product, thus it should be the same price for the two companies. I think it would be logic to make the average of the prices [20, 120] which is 50. To this result I sum 20 to the price to be located in the middle of the previous prices. The most logic strategy would be 70, but to get more profits than my rival I set the price at 69. Si estuviese compitiendo con una empresa que venda un producto, esta nunca pondría un precio a su producto que en vez de maximizar beneficios o al menos no perderle dinero al producto ni salir acumulando más gastos que ingresos, pondría un precio que le otorgue satisfacción a la empresa a nivel económico. Daremos por hecho que escogerá un precio que no sea muy alto para no perder clientes que opten a comprar de otra empresa y no escogería un precio muy bajo que no les daría ninguna satisfacción económica, por lo cual escogería un precio medio, ni muy alto ni muy bajo. Pero no compito con una empresa que piense igual sino con un alumno que no sé cómo piensa.

The price that I choose is: 90

You have this space for whatever you need:

If I were competing with a firm selling a product, this firm would never set a price that instead of maximizing profits or at least no to accumulate more expenses that income, it would set a price that gives satisfaction at the economic level. For this firm will choose a price not too high to lose clients or not too low to have negative profits, thus the firm would choose a mid price, not too high not too low. But I am not competing with a firm that thinks in the same way, I am competing with a student and I do not know the way he thinks.

A c c e p t e d M a n u s c r i p t

SUBJECT 142

El precio que yo elijo es: 70

Tienes este espacio para lo que necesites:

La razón por la cual he elegido 70 como precio es porque es la media entre 20 y 120. Así no se estable un precio ni muy barato ni muy caro, y siendo la media exacta hay más probabilidad de que mi competidor elija la misma cantidad.

The price that I choose is: 70

You have this space for whatever you need:

The reason I have chosen 70 as a price is because it is the average between 20 and 120. In this way I do not set a price neither too cheap nor too expensive, and being the exact mean there is a higher probability that my rival sets the same price.

A c c e p t e d M a n u s c r i p t

SUBJECT 143

El precio que yo elijo es: 70

Tienes este espacio para lo que necesites:

Es la media. Si es demasiado caro mi precio está claro que no le haré competencia, si es demasiado bajo no cubriría mis costes.

The price that I choose is: 70

You have this space for whatever you need:

It is the average. If my price is too expensive it is clear that I do not compete, if it is too low I would not cover my costs. La gente tiende a poner números altos aunque la penalicen, en el caso de 70, mi número no es elevadamente alto ni pequeño, en el caso de que mi número fuese menor obtendría además 20 puntos de recompensa.

The price that I choose is: 70

You have this space for whatever you need:

People tend to set high numbers even though they may get the penalty, in the case of 70, my number is neither high nor small, in case that my number is lower I would win 20 points of reward.

A c c e p t e d M a n u s c r i p t

SUBJECT 154

El precio que yo elijo es: 70

Tienes este espacio para lo que necesites:

El precio es 70 porque en caso de tener yo el precio menor voy a sumar 20 puntos más que son 90 en total y es una buena puntuación. Mientras si elijo mas seguramente este por debajo de la otra persona y me va a restar 20 puntos a lo que decida él.

The price that I choose is: 70

You have this space for whatever you need:

The price is 70 because if I have the lower price I am going to add 20 points, which means 90 as total and this is a good number. On the other hand, if I choose a higher number I will probably be under the other person and 20 will be taken away from his decision. Elijo este número porque está situado en el medio (más o menos) del intervalo, además, me parece una buena cantidad de puntos. También pienso que somos muy ambiciosos y probablemente mis compañeros pongan precios mayores al mío.

The price that I choose is: 70

You have this space for whatever you need:

I choose this number because it is located in the middle (more or less) of the interval, besides, I think this a good amount of points. I also think that we are very ambitious and probably many of my partners choose higher prices that mine.

A Si calculamos la media de marca del intervalo nos da 70, que será el comportamiento supuestamente mayoritario. Si además tenemos en cuenta que en los demás experimentos se nos ha animado a apostar y arriesgar, elegiré 84, ya que la gente tiende a poner múltiplos de 5.

The price that I choose is: 84

You have this space for whatever you need:

If we calculate the average of the interval we get 70, supposedly this will be the majority's behavior. If we take into account that in other experiments we have been encouraged to bet and risk, I will choose 84, since people tend to choose multiples of 5.

A c c e p t e d M a n u s c r i p t

SUBJECT 194

El precio que yo elijo es: 85

Tienes este espacio para lo que necesites:

The price that I choose is: 85

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 198

El precio que yo elijo es: 90

Tienes este espacio para lo que necesites:

Yo elijo el precio de 90, no elijo un precio menor porque no quiero que el otro gane mucho mas, y si se da el caso que la otra tenga un precio menor que el mío sigo obteniendo algunos puntos.

The price that I choose is: 90

You have this space for whatever you need:

I choose 90, I do not choose a lower price because I do not want him to win a lot, and if it is the case that he has a price lower than mine then I keep wining some points.

A c c e p t e d M a n u s c r i p t

SUBJECT 199

El precio que yo elijo es: 98

Tienes este espacio para lo que necesites:

Es muy probable que la gente haya tirado por un precio bajo para poder ganar, pero yo especulo por un precio tan alto porque me da la impresión que la gente piensa una cosa y hace otra, por lo tanto creo que con esa cantidad fijada voy a ganar, y obtener más puntos ya que obtendré los puntos de mi pareja mas la bonificación de 20 puntos adicionales ya que supongo que fijará un numero elevado al mío.

The price that I choose is: 98

You have this space for whatever you need:

It is highly probably that people have set a low price to win, but I speculate with a high price because I think people differ in what they think and end up doing, thus I think that with the set quantity I will win, and I will win more points since I will win my partner's points plus the 20 points additional reward because I think he will set a higher price than mine.

A c c e p t e d M a n u s c r i p t

SUBJECT 200

El precio que yo elijo es: 99

Tienes este espacio para lo que necesites:

He supuesto que la mayoría de la gente pondrá un número mayor o igual a 100, y por eso he puesto el número menor que se aproxime más a 100.

The price that I choose is: 99

You have this space for whatever you need:

I have assumed that the majority of the people will set a number higher or equal to 100, and that is why I have set the smaller number closest to 100.

A c c e p t e d M a n u s c r i p t

SUBJECT 203

El precio que yo elijo es: 100 Tienes este espacio para lo que necesites:

Erigiría el precio 120 si supiera que la otra empresa va a fijar el mismo precio que yo, de manera que ganaríamos las dos partes. Pero como no lo sé, elijo 100 esperando que mi competidor sea ambiciosos y escoja 120 para ganar yo 40 puntos más que él.

The price that I choose is: 100

You have this space for whatever you need:

I would choose 120 if I knew that the other firm is going to set the same price, thus we both would win. Since I do not know I choose 100 expecting that he is ambitious and chooses 120, thus I win 40 points more than him. He elegido este precio porque he pensado que todo el mundo pondrá un precio alto para poder ganar más, y si todo el mundo pone un precio alto aunque pierda, al tener el otro un precio alto me llevo su precio alto menos 5 vaya que al final ganaré un número alto.

The price that I choose is: 105

You have this space for whatever you need:

I have chosen this price because I think everybody is going to set high prices to win more, and if everybody sets a high price though they lose, by setting a high price I win his high price minus 5, at the end I will win a high price.

A c c e p t e d M a n u s c r i p t

SUBJECT 210

El precio que yo elijo es: 109

Tienes este espacio para lo que necesites:

He escogido ese precio porque supongo que mi rival también querrá conseguir puntos (los máximos) entonces supongo que no pondrá el precio muy bajo porque o si no consigue pocos (aunque sean 5 más que yo). Si él decide poner un precio más bajo me saldría mal, pero si pone uno alto, a partir de 110, yo ganare 5 puntos, y me quedaré con 114 (próximo a la cantidad máxima).

The price that I choose is: 109

You have this space for whatever you need:

I have chosen this price because I suppose that my rival wants to win points too (the maximum amount) then I suppose that he will not set a low price because he will win few points (5 more than me). If he decides a price lower than mine everything would be wrong, but if he sets a high one, from 100, I win 5 points, ending up with 144 (close to the maximum amount). He escogido dicha puntuación porque creo que el pensamiento de la mayor parte de la clase será poner una puntuación alta, ya que se quiere obtener la mayor puntuación posible, y creo que 120 puntos será de las opciones más elegidas, por lo que con mi puntuación, obtendré una puntuación total mayor.

The price that I choose is: 110

You have this space for whatever you need:

I have chosen this number because I think that the beliefs of the most of the class will be to set a high number, because we wish to obtain the highest possible number, and I think 120will be one of the most chosen options, but with my number I will sum up a higher number.

A c c e p t e d M a n u s c r i p t

SUBJECT 217

El precio que yo elijo es: 110

Tienes este espacio para lo que necesites:

Escojo 110 porque aunque el otro individuo elija un precio inferior al mío la diferencia con el va a ser de solo 10 mientras que estoy seguro que el otro individuo pondrá el máximo precio con el fin de asegurarse los máximos puntos posibles pecando de agonía.

The price that I choose is: 110

You have this space for whatever you need:

I choose 110 because even though the other chooses a price lower than mine the difference will be only 10, I am sure that the other will set the maximum price to make sure the maximum amount of possible points.

A c c e p t e d M a n u s c r i p t

SUBJECT 220

El precio que yo elijo es: 118

Tienes este espacio para lo que necesites:

Mi elección es tasar el articulo en 118 ya que imagino que mi competidor puede pensar que al poner 120, el precio máximo, puede ganar el juego aunque tenga una penalización de 5 puntos, pero no creo que haga eso ya qué pensará en mi acción y pensará que yo haré eso y lo pondría a 119 así con mis supuestos 120me ganará y conseguirá un plus de +5 poniéndose en 119+5=124, por lo que espero que caiga en ese error y por eso taso el articulo en 118.

Nota: mi interés no es ganar este juego sino conseguir el mayor número de puntos posibles para la puntuación final de las pruebas, por lo que no me interesa rebajar demasiado el artículo aunque mi competidor lo haga mejor en este juego.

The price that I choose is: 118

You have this space for whatever you need:

My choice is 118 since I imagine that my rival might think that by setting 120, the maximum price, he can win the game though he has a penalty of 5 points, but I do not think he ends up doing this since he will think in my action and he will think I will do that and he would set the price at 119 thus with my supposed 120 he will win and he will get the + 5 points reward winning 119+5=124, I hope he does this mistake and that is why I set the price at 118.

Note: my interests is not to win this game but winning the highest number of possible points for the final number of the tests, I do not care about bringing the price down too much even if my rival does it better than me in this test. Elijo el precio máximo porque considero que la otra persona también lo hará, ya que todo el mundo va a más que a menos. Además, sería absurdo que la otra persona eligiera 20 puesto que aunque ganaría entre nosotros dos los puntos máximos que ganaría serian 25. También he pensado elegir un precio medio pero he pensado que la otra persona elegirá como mínimo el precio medio y además soy un avaricioso.

The price that I choose is: 120

You have this space for whatever you need:

I choose the maximum price because I think the other will do the same, everyone wants more than less. Besides, it would be absurd that he chose 20, he wins but wins 25 at most. I have thought to set the average price but the other will choose at least the average price and I am avaricious.

A c c e p t e d M a n u s c r i p t

SUBJECT 231

El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

Elijo 120, el máximo precio porque es el máximo de puntos que se pueden obtener y en el caso que el rival ponga un precio más bajo creo que 100 puntos es el máximo de puntos que se pueden ganar perdiendo. Si mi rival es listo pondrá 120 también y saldremos ganando los dos.

The price that I choose is: 120

You have this space for whatever you need:

I choose 120, the maximum price because is the maximum amount of points that we can win in the case of my rival sets a lower price I think 100 is the maximum amount of points that we can win losing. If my rival is smart enough he will set 120 and we both will win.

A c c e p t e d M a n u s c r i p t

SUBJECT 233

El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

Evidentemente tenemos una situación de dos empresas que producen un mismo producto y a las dos les interesa ganar el máximo. Es decir tenemos una situación de monopolio. Por lo tanto no creo que la otra empresa quiera hacerte la competencia ganando menos cuando podéis ganar más las dos fijando un precio alto. En el mercado en donde la decisión es una empresa o otra. En un monopolio u oligopolio el precio va a ser siempre elevado, ellos tiene la capacidad de decisión.

The price that I choose is: 120

You have this space for whatever you need:

Clearly we have a situation of two companies producing the same product and interested in making the maximum amount of money. Thus, we have a monopoly. I do not think that the other firm wants to be my rival winning less when we can win more setting a high price. This is a market in which one firm decides. In a monopoly or oligopoly the price is always high. They have the ability to decide.

A c c e p t e d M a n u s c r i p t

SUBJECT 234

El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

Porque no creo que mi competidor elija 120 si lo hace mejor lo pongo que elija un valor intermedio basándose en un principio de prudencia, por lo tanto como sé que va a restar 5 puntos elijo la opción más alta para quedarme con lo suyo menos 5 puntos evidentemente ganaré más puntos pero creo que yo en total ganaré más que si saco un precio menor al suyo y sumo lo mío mas 5 puntos. Evidentemente me baso en que el saque un precio intermedio.

The price that I choose is: 120

You have this space for whatever you need:

Because I do not think my rival chooses 120, I'd better assume that he will choose an intermediate value based on the prudence principle, thus I know 5 points will be subtracted I choose the highest to win his decision minus 5 points, clearly I will win more points but at the end I will win more than if I set a price lower than his and I add mine plus 5 points.

Clearly my decision is based on his decision of an intermediate price.

  report s a similar percent age of non-equilibrium choices t o previous T D experiment s wit h monet ary incent ives in a T D experiment wit h no rewards.

  Figur e 1 about her e

  escr ipt ive st at ist ics of sub j ect s' com m ent s referring t o subjects' mot ivat ions for t heir choices: at titudes t owards risk, loss aversion, aspiration levels, etc.

164

  Pr edi ct ing T D choices t hr ough P r incipal Com -

  may relate t o the expectat ion of gett ing bet ter outcomes than previously obtained. T his optimism may drive subjects t o hold high aspirations in the T D, which would explain the positive correlation between and .

  . K ., Holt , C., 2001. Ten litt le t reasures of game theory and t en intuitive contradict ions. A merican Economic Review 91(5), 1402-1422. Rubinstein, A., 2006. Dilemmas of an economic theorist. Econometrica 74, 865-883. Rubinstein, A ., 2007. Instinct ive and cognit ive reasoning : A study of response times. Economic Journal, 117, 1243-1259. St ahl, D., Wilson, P., 1994. Experimental evidence on players' models of other players. Journal of Economic Behavior and Organizat ion 25, 309-327. St ahl, D., Wilson, P., 1995. On Players' Models of Ot her Players: T heory and Experimental Evidence. Games and Economic Behavior 10, 218-254. Suetens, S., Pot ters, J., 2007. Bert rand colludes more than Cournot . Experimental Economics 10, 71-77.

  e p t e d M a n u s c r i p t A pp endi x B : Exper im ent al I nst r uct ions A pp endi x C: I nst r uct i ons t o Classi … er s

  El precio que yo elijo es: 20 Tienes este espacio para lo que necesites: Empresa 1: Yo, Empresa 2: Otro Empresa 2 < empresa 1 Yo pierdo Empresa 2 > empresa 1 Yo gano Elijo 20 porque es el mínimo donde yo puedo sumar los 20 puntos si la otra empresa fija uno mayor al mío, que es lo más probable o puede que elija lo mismo y yo no pierdo nada. The price that I choose is: 20 You have this space for whatever you need: Firm 1: Me, Firm 2: The other Firm 2 < firm 1 -I lose firm2 > firm 1 I win I choose 20 because it is the minimum level where I can sum up 20 points if the other firm sets a price higher than mine, which is the most likely, or the other firm can choose the same price and I will not lose anything. A c c e p t e d M a n u s c r i p t Subject 3 El precio que yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites: He elegido ese precio porque así aseguro que ella lo elige mayor o igual al mío y no pierdo. No arriesgo, gano poco pero gano seguro.

  yo elijo es: 20 Tienes este espacio para lo que necesites: He elegido 20 porque si pongo una mayor puede que con quien compita lo haya puesto menor, llevándome yo una menor cantidad que la fijada por mí a la que hay que añadir una penalización de 20 puntos. Eligiendo 20, sé que puede que mi competidor este por arriba, de forma que me llevaré 40, o que hayamos elegido lo mismo, llevándonos los dos 20 puntos.The price that I choose is: 20You have this space for whatever you need:I have chosen 20 because if I set a higher price it may be that my competitor has set a lower price, in this case I will get a lower quantity than the one set by me, and besides there is a penalty of 20 points. By choosing 20, I know that either my competitor has set a higher price and then I will get 40 or that we have chosen the same number and then both of us will get 20. yo elijo es: 20 Tienes este espacio para lo que necesites:He elegido el precio de 20 así como mínimo voy a ganar 20. Hay varios casos que puedo tener: Yo→20, otro →20 →Los dos nos llevamos 20 Otro→n>20, yo→20 → Yo me llevo 40 el otro cero.Si no se escogiera esta opción podría darse la posibilidad de que la otra empresa cogiera un precio menor que el mío, como por ejemplo 20, y yo me llevaría cero.The price that I choose is: 20You have this space for whatever you need:Ihave chosen the price of 20, in this way I will at least win 20. There are several cases: Me→20, other →20 →we both win 20 Other→n>20, me→20 → I win 40 the other zero. I f I don't choose this option then there is the chance that the other firm chooses a lower price than mine, for example 20, and then I would win zero. yo elijo es: 20 Tienes este espacio para lo que necesites: 20 es el mejor precio, por lo tanto mi competidor no puede tener un precio menos. Caben dos opciones: Que gane yo→ serán 40 puntos para mí y cero para mi competidor Que ambos tengamos el mismo precio → los dos ganamos 20 puntos. De esta forma yo siempre gano puntos. The price that I choose is: 20 You have this space for whatever you need: 20 is the best price, in this way my competitor cannot set a lower price. yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites: He elegido 20 porque es el número más bajo, entonces la otra empresa no podrá tener un número menor al mío, a lo sumo tendrá un numero o precio igual al mío por tanto con esto, o bien yo gano o bien ambos ganamos.The price that I choose is: 20You have this space for whatever you need: I have chosen 20 because is the lowest number, then the other firm cannot set a lower price than mine, at most it will have a number or price equal to mine, in this way either I win or we both win.

  yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites: ¿Por qué 20? Porque prefiero no arriesgarme, prefiero llevarme poco a arriesgarme y quedarme sin nada. yo elijo es: 20 Tienes este espacio para lo que necesites:Elijo 20 porque tengo más probabilidad de ganar ya que si la otra empresa elige mi misma cantidad, entonces gano yo (aunque también el), si el elige una cantidad mayor, aún seguiré ganando yo. (2/3 de probabilidad de ganar yo).The price that I choose is: 20You have this space for whatever you need: I choose 20 because I have a higher probability of winning, given that if the other firm chooses the same quantity, the I win (although the other firm also wins), If I chose a higher quantity I will still win. (With probability 2/3 I win). yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites: Elijo 20 porque no quiero arriesgar a que la otra persona escriba un número inferior al mío. Prefiero depender solo de lo que yo escriba y tener al menos 20 puntos seguro. The price that I choose is: 20 You have this space for whatever you need: I choose 20 because I don't want to risk myself and let the other person write down a lower number than mine. I prefer to depend only on my decision and get at least 20 points for sure.

  yo elijo es: 20 Tienes este espacio para lo que necesites:Al responder esto tengo de 20 a 40 puntos, si aumento el precio y me enfrento con alguien que lo fije en 20 obtengo cero. yo elijo es: 20 Tienes este espacio para lo que necesites: Yo elijo 20 por dos factores: 1. Tengo la posibilidad si elijo cualquier otro valor, de que la empresa rival elija 20 y me deje a mi cero. 2. Al elegir 20 si mi empresa rival elige cualquier otro valor la dejare a 0.The price that I choose is: 20You have this space for whatever you need: I choose 20 for two reasons: 1. I have the chance that if I choose any other value, my rival will choose 20 and I will win cero. 2. By choosing 20 if my rival chooses any other value I will make it win cero.

  yo elijo es: 20 Tienes este espacio para lo que necesites: He elegido 20 porque así la otra empresa no puede fijar un precio menor que el mío y así siempre gano.

  yo elijo es: 20 Tienes este espacio para lo que necesites: Fijo el mínimo precio porque siempre me llevo 20 puntos seguros ya que poniendo un precio más alto me arriesgo demasiado ya que me podrían penalizar y prefiero llevarme los puntos seguros porque no voy a perder, solo puedo mejorar los puntos o quedarme igual si mi otro compañero elige el mismo precio.The price that I choose is: 20You have this space for whatever you need: I set the minimum price because I will get 20 points for sure, I would risk myself by setting a higher price because I would get the penalty, I prefer to get the secure points , I can get more points or stay the same if my partner chooses the same price.

  yo elijo es: 20 Tienes este espacio para lo que necesites:

  choose the minimum price 20, because if the worst comes I would win 5 points, and since I have the minimum price I win 5 points more. yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites:Porque fijando el precio mínimo me aseguro que mi competidor no va poner un precio menor y así me aseguro ganarle (poner el precio menor) o que tengamos el mismo precio, por lo que también ganaría.The price that I choose is: 20You have this space for whatever you need:Because by setting the minimum I make sure that my rival is not going to set a lower price and I win for sure (by setting the lowest price)or we can have the same price, in that case I would win too. yo elijo es: 20 Tienes este espacio para lo que necesites: Fijo el precio más bajo debido a que yo quiero ganar, y solamente con 20 tengo la seguridad de que lo conseguiré, o en el peor de los casos empatar.The price that I choose is: 20You have this space for whatever you need: I set the lowest price because I want to win, and only by setting 20 I am sure that I can get it, or at least I can tie. yo elijo es: 20 Tienes este espacio para lo que necesites: Prefiero el 20 porque si él opta por el 20 saldremos ambos ganando. Si con suerte, si confío en que si el elige un precio superior al mío, saldré del mismo modo ganando mas los 5 puntos en comparación con él. Prefiero ganar yo aun con pocos puntos pero con toda seguridad, o salir ganando por lo menos los mismos puntos que él.The price that I choose is: 20You have this space for whatever you need: I prefer 20 because if he chooses 20 we both win. If luckily I trust in his choice is a higher price I win 5 points more compared to him. I prefer to win a few points for sure totally, or to win at least the same points as my rival. yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 20 Tienes este espacio para lo que necesites: Está claro quela forma más fácil para asegurarme ganar o al menos llevarme algo seguro es 20, porque de esta forma, o ganas (y además te llevas la diferencia) o empatas y también sumas algo seguro, lo de mas es arriesgarse. Y como esto cuenta para examen…"undercutting".The price that I choose is: 20You have this space for whatever you need:It is clear that the easiest way to make sure that I win or at least get something for sure is 20, because in this way, either I win (and I can get the difference) or tie and sum something sure, otherwise, it would be risky. And since this counts for the exam…"undercutting". yo elijo es: 20 Tienes este espacio para lo que necesites:

  choose the minimum because I could be exposed to my partner who could set a lower number thus I could lose (not to win) points. If I knew who my partner is I would talk to her in order to set a price of 120. yo elijo es: 20 Tienes este espacio para lo que necesites:

  yo elijo es: 25 Tienes este espacio para lo que necesites: Elijo 25 puntos porque ponga lo que ponga mi pareja me conformo con la puntuación. Si mi pareja pone un precio menor que el mío ganaré 5 puntos, si por el contrario el precio más bajo es el mío ganaré 45. yo elijo es: 30 Tienes este espacio para lo que necesites:

  yo elijo es: 30 Tienes este espacio para lo que necesites:Pongo este precio porque es un precio muy competitivo que dejaría a mi rival con solo 10 puntos y a mí me dejaría con 50. yo elijo es: 30 Tienes este espacio para lo que necesites: He puesto un precio bajo pensando en la recompensa de los veinte puntos y en la penalización del compañero, no he puesto el más bajo por solidaridad para que el compañero al menos también se lleve diez puntos.The price that I choose is: 30You have this space for whatever you need: I have set a low price thinking in the reward of 20 points and my partner´s penalty, I did not set the lowest price in solidarity with my partner, at least he win 10 points. yo elijo es: 40 Tienes este espacio para lo que necesites:

  yo elijo es: 40 Tienes este espacio para lo que necesites:

  yo elijo es: 40 Tienes este espacio para lo que necesites:

  yo elijo es: 40 Tienes este espacio para lo que necesites: He fijado el precio en 40, pues que la media estaría en 70, suponiendo que la persona que yo compito sea más arriesgada, he puesto un margen más bajito para que la otra persona, espero que lo ponga más alto y así además de los 40, sacarme yo 20 puntos más de margen. Con esta decisión espero conseguir algunos puntos, sin arriesgarme a quedarme sin nada.The price thatI choose is: 40 You have this space for whatever you need: I have set the price at 40, because the average would be in 70, assuming that the person I am competing with is riskier, I have set a lower margin expecting that the other person sets a higher price, thus besides the 40 points I could win 20 extra points. With this decision I hope I can get some points without risking myself. yo elijo es: 42 Tienes este espacio para lo que necesites:

  yo elijo es: 45 Tienes este espacio para lo que necesites: Elijo este precio porque es intermedio, más bajo que la media del intervalo pero no es el mínimo. Por lo que el riesgo es moderado. The price that I choose is: 45 You have this space for whatever you need: I choose this price because is an intermediate one, It is lower than the interval´s mean, but it is not the minimum. The risk is moderate. yo elijo es: 50 Tienes este espacio para lo que necesites:

  yo elijo es: 65 Tienes este espacio para lo que necesites: Elijo 65 porque es un valor intermedio y porque creo que perdería como mucho un tanto de es un precio medio del intervalo y tengo la misma probabilidad de obtener puntos como de perderlos.Tienes este espacio para lo que necesites: yo elijo es: 65 Tienes este espacio para lo que necesites: He elegido un precio más o menos intermedio para que mi empresa pueda obtener beneficios, ya que al poner un precio elevado puede que lo adquieran menos personas.The price that I choose is: 65You have this space for whatever you need: I have chosen this more or less intermediate price in order to obtain profits for my firm, because by setting a high price less people could buy my product. yo elijo es: 69 Tienes este espacio para lo que necesites:

  yo elijo es: 70 Tienes este espacio para lo que necesites: Porque me gusta y porque es la media de esos dos números. yo elijo es: 70 Tienes este espacio para lo que necesites: He elegido 70 porque tiene la misma probabilidad que sea mayor o menor. yo elijo es: 90 Tienes este espacio para lo que necesites:

  yo elijo es: 70 Tienes este espacio para lo que necesites: He puesto 70 porque es justo la mitad y aunque tengo un 50% de posibilidades de perder si pongo un precio menor mis posibilidades de ganar son mayores pero ganaré una cantidad inferior. The price that I choose is: 70 You have this space for whatever you need: I have set 70 because it is just the half and although I have a 50% chance of losing if I set a lower price my chances of winning are higher bit I will win a lower amount. yo elijo es: 70 Tienes este espacio para lo que necesites: Elijo 70 porque está en medio, ni me arriesgo a poner 120 ni escojo la opción segura de 20. yo elijo es: 70 Tienes este espacio para lo que necesites: El precio lo he escogido porque es la mitad del intervalo, tendré un 50% de probabilidad de que la otra empresa este por encima o por debajo. The price that I choose is: 70 You have this space for whatever you need: I have chosen this price because it is the middle of the interval, I will have 50% of probability that the other firm might choose above or under this price. yo elijo es: 70 Tienes este espacio para lo que necesites:

  yo elijo es: 70 Tienes este espacio para lo que necesites: He elegido este precio porque no conozco a mi pareja y no tengo ni idea de cómo reaccionara, así que me sitúo en el medio.The price that I choose is: 70You have this space for whatever you need: I have chosen this price because I do not know my partner and I have no idea how he will react, that is why I choose something in the middle. yo elijo es: 70 Tienes este espacio para lo que necesites: He elegido el 70 como número porque estoy suponiendo que mi rival ha puesto un número menor que yo pues de mi no se llevaría nada, lo único que perdería seria los 20 puntos en fin me quedaría en esta prueba con 0. Si el/ella hubiera puesto 20 sino siempre obtendría puntos. The price that I choose is: 70 You have this space for whatever you need: I have chosen 70 as number because I am assuming that my rival has set a number lower than mine and he would get nothing from me, my only lost would be 20 points and I would end up with 0 in this task. If s/he had written 20 I would always get points. me dan a elegir entre dos números, me decanto por el término medio. yo elijo es: 70 Tienes este espacio para lo que necesites: Mi elección es 70 porque es justo la mitad del intervalo y así tendré el 50% de acertar con mi elección. yo elijo es: 70 Tienes este espacio para lo que necesites: El precio que he elegido para mi empresa es 70; lo que he elegido haciendo una media sobre el intervalo y comparándolo con los posibles precios de mi competidor. Habiendo hecho esto creo que es mi mejor opción. The price that I choose is: 70 You have this space for whatever you need: The price I have chosen for my firm is 70, I have chosen it be computing the average of the interval and comparing it to the possible prices of my rival. Having done this I think it is my best option. yo elijo es: 70 Tienes este espacio para lo que necesites:Elijo una cantidad media ya que así si es mas bajo el de la otra empresa, gano lo que la otra empresa elige y si es más alto gano lo que yo he elegido.The price that I choose is: 70You have this space for whatever you need:I choose a middle amount because if it is lower than the other firm I win what this firm chooses and if it is higher I win what I have chosen. yo elijo es: 70Tienes este espacio para lo que necesites: He elegido el precio de 70, simplemente porque he hecho la media del intervalo y no he querido poner un precio más alto por no arriesgarme mucho. Si el precio es menor ganaré 20 puntos, si el precio es mayor ganare 90 puntos, y si es igual ganare 70 puntos, por lo tanto creo que estas cantidades son buenas.The price that I choose is: 70You have this space for whatever you need: I have chosen a price of 70, simply because it is the average of the interval, I did not want to set a higher price because I do not want to risk. I f the price is lower I will win 20 points, if the price is higher I will win 90 points, and if it is equal I will win 70 points, thus I think these amounts are good enough. yo elijo es: 70 Tienes este espacio para lo que necesites: Este precio lo he puesto porque es la media del intervalo. Y tengo una probabilidad de que la otra empresa ponga también el mismo precio (70), y ganar ambos el mismo pecio, pero si pongo una cantidad menor o mayor tengo menos probabilidad de que el precio sea igual. The price that I choose is: 70 You have this space for whatever you need: I have set this price because it is the average of the interval. And I have a probability that the other firm sets the same price too (70), and both win the same price, but if I set a higher or lower quantity I have less probability of having the same price. yo elijo es: 70 Tienes este espacio para lo que necesites: Lo he elegido al azar no ha sido por ningún cálculo. yo elijo es: 70 Tienes este espacio para lo que necesites:

  yo elijo es: 80 Tienes este espacio para lo que necesites:Porque solo está un poco por encima de la media del precio (70) y es probable que la empresa ponga un precio superior y yo gane 100 puntos. yo elijo es: 80 Tienes este espacio para lo que necesites: He puesto 80 porque he sumado los dos valores e iba a poner la media de estos pero he preferido arriesgarme y añadir 10 unidades más. yo elijo es: 84 Tienes este espacio para lo que necesites:

  yo elijo es: 100 Tienes este espacio para lo que necesites: He decidido 100, porque a no ser que la otra empresa haya cogido 20 voy a ganar algo y cuanto más alto haya puesto el precio mas granaré, si hubiera puesto 20 habría podido ganar seguro 20 y como mucho 40, de esta puedo ganar hasta 120. yo elijo es: 105 Tienes este espacio para lo que necesites:

  yo elijo es: 110 Tienes este espacio para lo que necesites: Porque creo que ponga la opción que ponga voy a ganar 20 puntos y a perder otros 20, menos cuando los precios sean iguales. yo elijo es: 110 Tienes este espacio para lo que necesites: He elegido 110 porque creo que mucha gente pondrá 120 o un precio parecido, por lo que si su precio es menor que el mío no creo que pierda mucho, en cambio puedo ganar si mi precio es menor o igual. The price that I choose is: 110 You have this space for whatever you need: I have chosen 110 because I think that the majority of people will set 120 or a similar number, if his price is lower than mine I don't think I lose so much, but I can win if my price is smaller or equal. yo elijo es: 110 Tienes este espacio para lo que necesites: Elijo 120 porque si mi pareja elije 120 creyendo que yo también lo hago para que ganemos los dos 120 yo ganaré 130. yo elijo es: 110 Tienes este espacio para lo que necesites:

  yo elijo es: 119 Tienes este espacio para lo que necesites: Si quisiéramos lo máximo la mayoría erigiría 120 para ganar siempre entonces si yo pongo 119 tengo posibilidades de ganar a aquellos que hayan sido avariciosos y hayan apostado 120. The price that I choose is: 119 You have this space for whatever you need: I we want the maximum most of us would choose 120 to win always then if I set at 119 I have probabilities of beating those who have been ambitious and have set 120. yo elijo es: 120 Tienes este espacio para lo que necesites: He puesto 120 porque si todos ponemos un precio alto cuando compitamos, nos vamos a llevar los 2 muchos puntos (5 arriba, 5 abajo) entonces creo que si aquí ponemos un precio bajo para competir, estaremos perdiendo los 2. Si todos pusiéramos 120 tendríamos seguros al menos 115 y podríamos hasta ganar 125. (Espero que lo demás hayan pensado eso…o al menos mi competidor) The price that I choose is: 120 You have this space for whatever you need: I have set 120 because if we all set a high price when we compete we are going to win a lot of points, then If we set a low price to compete we both would be losing. If we all set 120 we would have for sure at least 115 and we could win up to 125. (I hope everyone thinks in the same way…or at least my rival).

  yo elijo es: 120 Tienes este espacio para lo que necesites:

FiguresFigure 1

 1 Figures

Figure 1 :Figure

 1 Figure 1: Choices and Penalty Size in the Traveler's Dilemma (N=238)

  13 T he de… nt ion of variables and writ t en inst ruct ions given t o RAs can be found in Appendix C.

	z	= 0 968 ¡ :	p value ¡	= 0 33 :
	T here were no requirement s on the number of variables used for each subj ect and RAs
	were allowed t o creat e new variables if t hey thought they were necessary, although
	26 3.1 Codi … cat ion of sub j ect s' com m ent s i nt o var i ables 0 1 2 f g ; ; 3 Pr incipal Com ponent s A naly sis M they did not do so. RA s returned two spreadsheet s associating subjects' comment s t o variables. No e¤ort was made t o force agreement between coders. One of the coders was more prone t o classify comment s into variables than t he other. W hile coder gave a positive value t o ent ries ( out of ent ries), coder gave a positive a n u s c r i p t value to ent ries (
	0	2 A c c e p t e d	2	1 Risk	1
		[80 200] ;
	[180 300] ;
		Calc	E r r or
						8

of our study. 14 T hey were explicitly t old that t heir task was t o capture and classify what had been said rather than t o int erpret or rat ionalize subjects' choices.

15

Bot h RAs worked separately and independent ly and only met at t he time of receiving inst ructions.

Table 1 :

 1 Subj ec t s Ex pl an at i o ns o f Ow n Ch o ic es in t he t d

	x	%	Content	x	%	Content
		CONCERNS		STRATEGY
	Ri sk	13.4	Risk averse	Aver age	19.3	Average
	Ri sk	4.6	Risk loving	Aver age	5.5	Average
	Z er o	32.8	Win zero averse	_	1.3	Focal Point 20
	Z er o	0.4	Win zero like	_	5.0	Focal Point 120
	Win	9.7	Win loving
	Win	1.3	Win aversion	Coor d	1.7	Coordinate
				Cut	10.5	Undercut rival
	Penalty	6.3	Penalty averse	CutC	5.0	Undercut 1 unit
	Size	0.4	Penalty high	CutC	3.4	Undercut 1 unit
	Size	0.8	Penalty low	CutR	0.8	Undercut twice
	Lose	7.6	Loss aversion	Low	17.6	Choice is low
				Low	5.0	Choice is high
	Aspi	7.6	Aspiration low		RIVALS
	Aspi	5.0	Aspiration high	Pr ob	28.6	Probability beliefs
		REASONING	Pr ob	0.4	Point beliefs
	Calc	20.2	Calculations	H igh	14.7	Beliefs high
				H igh	2.5	Beliefs low
	Theor y	8.4	Economic theory	H igher	13.9	Beliefs higher
				H igher	0.4	Beliefs lower
	Er r or	8.8	Errors
				Aver ageR	2.9	Beliefs average
	N olog	0.8	Solvable	Aver ageR	0.4	Beliefs not average
	N olog	6.3	Unsolvable	INTERDEPENDENT PREFERENCES
				Soci	3.4	Equity
	Er mean	10.1	Average is 70	F air	0.4	Fairness
	Er mean	4.2	Average not 70	Soci	12.2	Competitive

Table 3 :

 3

		PCs d r i v i ng T D c h o ic es (t o bit r eg r essio n ) ( N = 238)
	PC	Name	(Tobit)	(QSR)
				56.71
	PC1			12.16
	PC2			11.51
	PC3			-8.35
	PC4			-12.87
	PC5			3.28
	PC6			-9.09
	Not ice t hat all PCs are signi… cant (p-values of virt ually and have t he expect ed
	sign).
			Figure2 about here

Table 5 :

 5

	0.21

bold Per so na l c ha r act er ist ic s ( Co r r el at io n s) ´2 * (p-value) and [sample size]. Numbers in indicate statist ical signi… cance.

Our variable measures mathemat ical skills, which may be related t o subject s'

Table 6 :

 6

	-0.04

Pr ed ic t i ng A c t i o ns (pr o bi t an d t o bi t r eg r essi o ns)

* (p-value).

  tically signi… cant at st andard levels. A lt hough this result may seem disappoint ing at … rst, not ice that if in this paper we have focused on self-reports, grouped under PCs, it is precisely because t hey indicate a unique driving mot ivat ion behind choices in t he

	constant
	n	169	234	184
		22

  TASK 3: Your performance in t his task DOES count for your grade in Micro I. In t his test you must decide on prices. A ssume that YOU are a … rm compet ing in a market with only two … rms. Now we will explain to you who is t he ot her … rm and what your t ask is. Your compet it or is a clasmate in your Micro I sect ion. The mat ching will be made such that everyone has a single partner. Task : You must … x a price in t he int erval [ 20, 120 ], both extremes included. Since you compet e wit h a rival … rm you must consider that: If t he ot her company … xes a price lower than yours, t hen you will earn what t he ot her has … xed minus a 20 point penalty (she will earn her price plus 20 extra point s). if t he ot her company … xes a price higher than yours, then you will earn what you have … xed plus 20 extra point s (she will earn your price minus a 20 point penalty if both prices coincide then BOT H of you will earn t he price you have … xed. You can use t he following space for what ever you may need. Please indicate how you have come up wit h your decision. Your t ask consists in classifying the comments made by t he 242 subj ect s who participated in the experiment . We have creat ed t he variables listed below and you must codify the writ ten informat ion provided by subj ect s in these variables. Your t ask does not consist in int erpreting why the subj ects writ e what they writ e, but only in accurat ely att esting what they writ e. Our objective is t o … nd out regularities on what subj ect s write, so please be careful when classifying comment s, you should re ‡ect only what subject s wrote.

	The price t hat I choose is: _ _ _ _

  Finally, you can add columns of variables if you think t hat our variables do not allow you t o re ‡ect what a subject writ es. In that case, please, writ e your codi… cation syst em in a Word document similar t o t he t able " VARIABLES" shown below. Please, before you start make sure that you underst and t he experiment and t he payo¤ mechanism. Says does not want to lose / t o have less point s than the rival " 2" if: Says wants to lose / to have less points than the rival Leave " 0" if: Does not ment ion t his issue Decision depends on size of the penalty Says penalty is " high" and t hat it a¤ects decision

	" 1" if: Explanat ion: Cut " 2" if:	M akes mist akes when calculating payo¤s P
	of points " 1" if: Explanat ion: Comments show subject does not underst and payo¤ mechanism Chooses a value lower than what that t hinks rival will do Leave " 0" if:
	" 2" if: Leave " 0" if: Says want s t o earn zero points Underst ands payo¤ mechanism or it is not possible t o infer whether " 1" if: Says " undercuts" what t hinks rival will do
	Leave " 0" if: the payo¤ mechanism has been understood Does not mention this issue " 2" if: Says chooses same as rival
	Leave " 0" if:	Does not mention rival's value
	Penalt y Prob	K	E
	Thank you very much for your help. Does not like / Does not want t o take risks Says does not want / does not like t o take risks / takes a decision because implied risk is low or moderat e Says want s / likes t aking risks Does not mention this issue VA RI A B LES Variable Column Risk C Explanat ion: " 1" if: " 2" if: Leave " 0" if: A c c e p t e d M a n u s c r i p t Explanat ion: " 1" if: " 2" if: Leave " 0" if: Lose F Explanat ion: Size G Explanat ion: " 1" if: " 2" if: Leave " 0" if: Calc H Explanat ion: " 1" if: Leave " 0" if: T heor y I Explanat ion: " 1" if: Explanat ion: T hinks t hat rival will choose higher value t han self " 2" if: Wants t o avoid being penalized Says want s t o avoid being penalized Says want s t o be penalized Does not ment ion this issue Want s to avoid having less point s than rival Does not ment ion this issue Writes calculations on sheet There are calculat ions writt en on sheet T here are no calculat ions on sheet Gives an economic explanation of decision Comment explains an economic t heory (correct or not) / t alks about … rms/ uses terms like " undercutt ing" , et c. A c c e p t e d Explanat ion: " 1" if: " 2" if: Leave " 0" if: High N Explanat ion: " 1" if: " 2" if: Leave " 0" if: Higher O Does not think it is possible to choose using reasoning Says it is not possible t o choose using reasoning / chooses randomly Says it is possible to choose using reasoning Does not mention " reasoning" Thinks rival will choose a high value Says rival will choose a high value Says rival will choose a low value Does not mention rival's value A c c e p t e d Fair S Explanat ion: " 1" if: " 2" if: Leave " 0" if: Soci T Explanat ion: " 1" if: " 2" if: Leave " 0" if: Chooses a value for being " fair" Says choice is mot ivat ed to make payo¤ dist ribution fair / talks about " fairness" Says choice is motivated to make payo¤ distribution unfair Does not mention payo¤ distribution fairness Cares about rival´s payo¤s Says want s bot h players t o earn more or less t he same Wants to earn more than rival Does not ment ion payo¤ dist ribut ion A c c e p t e d " 1" if: Says penalty is " low" and t hat it a¤ect s decision M a n u s c r i p t Explanat ion: " 1" if: " 2" if: Leave " 0" if: Ermean L Explanat ion: " 1" if: " 2" if: Leave " 0" if: Nolog M T hinks t hat t he rival can choose di¤erent values Says t hat cert ain values will be chosen wit h probability / are likely / most probably / a high percent age of times / in the maj ority of cases Says t hat rival will choose some value for sure Does not say anyt hing about t he probability of values chosen by rival Does not know how to calculate t he interval 's mean Says mean is di¤erent from 70 Says mean is 70 Does not mention t he value of the int erval's mean M a n u s c r i p t Cut C P Explanat ion: " 1" if: " 2" if: Leave " 0" if: Cut R Q Explanat ion: " 1" if: " 2" if: Leave " 0" if: Chooses a value lower than rival's expect ed value Says chooses j ust one unit less than rival's expect ed value Says chooses a somewhat lower value (5, 12, " a litt le lower" ) than rival's expected value Does not ment ion value rival will choose T hinks rival will undercut and undercut s even more Says undercuts just one unit t o the rival's undercut value Says chooses a somewhat lower value (5, 12, " a lit tle lower" ) t han rival's undercut value Does not mention rival's value M a n u s c r i p t
	Does not want to earn zero points / Wants to earn a posit ive number Says rival will choose higher value t han self A verage Zer o " 1" if: O D Explanat ion: Leave " 0" if: " 2" if: Says rival will choose lower value t han self Explanat ion: Chooses an average value
	of points Err or Leave " 0" if: " 1" if: Says chooses a value so t hat it is average (or int ermediate) J Does not ment ion rival's value
			29

Please, before you start reading subj ects' comments, have a look at t he list of variables and t heir codi… cation below. You will need to check t he codi… cation again while you … ll up t he Excel … le, specially wit h t he … rst subj ect s. Please, be patient and do it carefully.

The inst ructions of the experiment appear in each subj ect s' forms.

Says wants t o avoid earning zero points / Wants t o earn a positive number

choose this price because I don't know the other price and I don't know if the other person will take a risk. The only way to obtain a good number is by setting the lowest price.

  Porque así mi precio es el más bajo, yo ganaría mi precio más 20 puntos, ella no gana nada porque se le penaliza con 20 puntos. Me interesa que la otra empresa pierda, porque si gana, ganaría más que yo.

	Subject 30
	El precio que yo elijo es: 20
	Tienes este espacio para lo que necesites:
	The price that I	M a n u s c r i p t
	A c c e p t e d

choose is: 20 You have this space for whatever you need: Because if mi price is the lowest, then I would win my price plus 20 points, he wins nothing because she gets the penalty. I am interested in making the other firm lose, because if the other firm wins, it will win more than me.

choose is: 20 You have this space for whatever you need: I think that by setting the minimum we both are going to coincide, but with the advantage that if the other person sets a higher price, I will win the same plus the reward, in this case I win more than the other, setting a lower price than mine is impossible because I have set the minimum, that is, either we win the same, this means no competition at all, or I win more than my rival. I don't know if I will win the maximum, but at least I win the same as my rival.

	Subject 41
	El precio que yo elijo es: 20 Subject 42
	Tienes este espacio para lo que necesites: El precio que yo elijo es: 20
	Yo creo que poniendo el mínimo vamos a coincidir, pero con la ventaja de que si la otra Tienes este espacio para lo que necesites:
	persona pone un precio mayor, ganaré lo mismo mas recompensa, lo cual gano más que ella, y Tomo esta decisión porque de esta manera mi compañero no podrá optar a un numero más poner menos que yo es imposible porque he puesto el mínimo, es decir, o ganamos lo mismo y pequeño ya que el 20 es el más pequeño que ofrece el intervalo. De igual forma, si el/ella no por tanto no hay competencia, o gano más que ella. No sé si ganaré lo máximo, pero como poco gano lo que ella. The price that I A c c e p t e d M elige 20 mi numero siempre será más bajo que el suyo. a n u s c r i p t The price that I

choose is: 20 You have this space for whatever you need: I choose this because in this way my partner cannot choose a smaller number since the smallest number in the interval is 20. If he/she does not choose 20, then my number will always be smaller than her/his number.

	Subject 43
	El precio que yo elijo es: 20
	Tienes este espacio para lo que necesites:
	Porque de este modo mi precio será menor o igual al suyo y siempre ganare sin obtener una
	penalización.
	M a n u s c r i p t
	A c c e p t e d

choose 20 in order to make sure I get 20 points, given that the other´s minimum is this number. Because if for example I set 30 and my rival 20, I win nothing. If my rival sets 20 I would earn 20 minus the penalty, then that would be zero points for me.

	Subject 46
	El precio que yo elijo es: 20
	Tienes este espacio para lo que necesites:
	Elijo 20 porque me llevo seguros, como mínimo, 20, y si me pareja ha marcado más me llevo
	incluso mas.
	The price that I	M a n u s c r i p t
	A c c e p t e d

choose is: 20 You have this space for whatever you need: I choose 20 because I will get for sure, at least 20, and if my partner has chosen a higher number then I can win even more.

	Subject 48
	El precio que yo elijo es: 20
	Tienes este espacio para lo que necesites:
	He puesto el número 20 porque de este modo no me pueden penalizar, ya que mi rival no
	puede elegir un número menor, tengo 20 puntos seguros, y si escoge un número mayor al mío,
	gano su puntuación. The price that I	M a n u s c r i p t
	A c c e p t e d

choose is: 20 You have this space for whatever you need: I have chosen 20 because in this way I will avoid the penalty, my rival cannot choose a smaller number, I have 20 points for sure, if he chooses a higher number than mine, then I win his number.

	Subject 49
	El precio que yo elijo es: 20
	Tienes este espacio para lo que necesites:
	M a n u s c r i p t
	A c c e p t e d

choose is: 75 You have this space for whatever you need: I have set 75, because it is the middle of the interval approximately. But I do not have any other convincing reason to set this number.

  El precio que yo elijo es: 75 Tienes este espacio para lo que necesites: He fijado ese precio porque es más o menos más de la mitad, y al ser un poco adversa al riesgo en cuanto se trata de la nota, no quiero poner un precio demasiado elevado para que el otro me supere el precio.

	SUBJECT 169 SUBJECT 170
	El precio que yo elijo es: 75
	Tienes este espacio para lo que necesites:
	He puesto 75, ya que es la mitad del intervalo, aproximadamente. Pero no tengo otra razón
	más convincente, del porque he puesto 75.
	c c e p t e d M a n u s c r i p t The price that I A c c e p t e d M a n u s c r i p t The

price that I choose is: 75 You have this space for whatever you need: I have set this price because it is more or less more than the half, being risk averse when it comes to the mark, I do not want to set a very high price and let the others beat me.

  El precio que yo elijo es: 80 Tienes este espacio para lo que necesites: He elegido 80, porque según he entendido, me sale mejor quedar abajo, me la he jugado un poco porque 80 no es tan bajo pero si con quien estoy emparejado me supera he triunfado.

	SUBJECT 173
	The
	M a n u s c r i p t
	A c c e p t e d

price that I choose is: 80 You have this space for whatever you need: I have chosen 80, according to what I have understood, it is better to be under my rival, I have risked a little because this is not too low, but if my partner exceeds this number I win.

  El precio que yo elijo es: 80 Tienes este espacio para lo que necesites: He elegido 80, porque si la otra empresa fija un precio menor, yo habré ganado la mitad del intervalo, restando la penalización. Si por el contrario la otra empresa ha fijado un precio mayor, mi empresa habrá ganado una gran cantidad.

	SUBJECT 174
	The	M a n u s c r i p t
	A c c e p t e d

price that I choose is: 80 You have this space for whatever you need: I have chosen 80, because if the other firm sets a lower price, I win the half of the interval, subtracting the penalty. On the other hand, if the other firm sets a higher price my firm wins a lot.

  El precio que yo elijo es: 80 Tienes este espacio para lo que necesites: Yo he elegido 80 porque creo que la otra empresa va a elegir más de 50 puntos por lo que yo he incrementado 30 puntos de riesgo por si esto supera el valor o lo iguala.

	SUBJECT 175
	The
	M a n u s c r i p t
	A c c e p t e d

price that I choose is: 80 You have this space for whatever you need: I have chosen 80 because I think that the other firm is going to choose more than 50, this is why I have added 30 risky points to exceed or equal the value.

  El precio que yo elijo es: 80 Tienes este espacio para lo que necesites:Porque si ambos elegimos un precio alto ganamos mucho más dinero por lo que creo que la otra empresa dará un precio parecido. No creo que ponga un precio de 15 (por ejemplo) porque los beneficios son muy bajos comparados con si hubiese elegido 70 (por ejemplo).

	SUBJECT 176
	The price that I	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: Because if we both choose a high price we win much more and I think the other firm will set a similar price. I do not think that he will set 15 (for example) because his profits would be too small compared to those of setting 70 (for example).

	SUBJECT 177
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	Pisar sobre seguro seria elegir 20 puntos dado que seguro tendrías 20 o 25 si el contrincante
	pone más. Yo me voy a arriesgar pero no mucho, suelo jugar sobre seguro. Una puntuación
	media me da una probabilidad media, pongo ochenta porque aunque es un precio alto,
	M ¡Espero que la "gente" (mi rival) quiera arriesgarse! a n u s c r i p t The price that I
	A c c e p t e d

choose is: 80 You have this space for whatever you need: The safe decision would be 20 because for sure I would win 20 or 25 if mi rival chooses more. I will risk but not too much, I use to take safe decisions. An average number means an average probability; I set 80 even though this is high. I hope people (my rival) want to risk!

	SUBJECT 178
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	He puesto esto para que no sea ni muy alto, ni muy bajo. Se puede considerar un precio
	intermedio.
	The price that I
	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: I have set this because it is neither high nor low. This can be considered an intermediate price.

	SUBJECT 179
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	He elegido de 80 ya que sea menor o mayor que el de mi pareja, gano una cantidad buena en
	ambos casos.
	The price that I
	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: I have chosen 80 because no matter if it is higher or lower than my partner's I win a good quantity either case.

	SUBJECT 180
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	120+20/2=70. La media de ambos números seria 70, pero creo que aun siendo la media la otra
	empresa habrá considerado el número muy pequeño y habrá aumentado el precio, Creo que
	80que 80 es un precio en el que las dos empresas podemos coincidir.
	The price that I	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: 120+20/2=70. The average of both numbers is 70, but I think being this the average the other firm has considered this number to be very small and this firm will increase the price. I think 80 is price in which we both can coincide.

	SUBJECT 181
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	He elegido 80 porque es un precio que esta encima de la mitad de los precios que se pueden
	elegir, y si gano, gano 100 puntos.
	The price that I
	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: I have chosen 80 because it is over the half of the prices that can be chosen, and if I win, I win 100 points.

	SUBJECT 182
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	Debido a que es difícil que mi competencia establezca un precio por debajo de 80, por lo que si
	lo pone igual o superior mi beneficio se acercará al máximo.
	The price that I
	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: Due to the fact that it is difficult that my rival sets a price below 80, if he sets a price equal or higher my profit will get close to the maximum.

	SUBJECT 183
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	Lo he elegido porque el numero 8 me da buena suerte en los negocios y porque es una
	cantidad que es intermedia.
	The price that I
	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: I have chosen it because 8 is a lucky number in my business and because it is an intermediate quantity.

	SUBJECT 186
	El precio que yo elijo es: 80
	Tienes este espacio para lo que necesites:
	Lo he escogido porque así tengo más o menos un 50% de probabilidades de que el precio sea
	menor aunque excedido. Con este precio creo que me aseguro unos puntos medio bastante
	buenos.
	The price that I	M a n u s c r i p t
	A c c e p t e d

choose is: 80 You have this space for whatever you need: I have chosen it because I have around 50% probability of having a lower price though superior. With this price I have for sure some good points.

  El precio que yo elijo es: 80 Tienes este espacio para lo que necesites: Yo elijo 80 ya que si pierdo 20 puntos me quedaría 60 y eso es un poco más de la mitad del intervalo y si ganase pues con los 20 puntos más tendría casi los 120, además si los dos hemos puesto lo mismo es una buena cantidad porque por lo menos es mas de la mitad del intervalo.

	SUBJECT 189
	The	M a n u s c r i p t
	A c c e p t e d

price that I choose is: 80 You have this space for whatever you need: I choose 80 because if I lose 20 points I would win 60 and that is a little more than the half of the interval, and if I win with the 20 points I would win almost 120, besides if we both say same this is a good quantity because at least is more than the half of the interval.

For example,[START_REF] Capra | Anomalous behavior in a T D?[END_REF] rat ionalize observed behaviour in repeat ed versions of t he game t hrough a learning process in a probabilist ic choice model in which players updat e t heir beliefs about rivals while using a noisy best response.

[START_REF] Crawford | Introduction to experiment al game t heory[END_REF] argues t hat by foregoing repet it ion as a t eaching device, one-shot experiment s place a heavier burden on subj ect s' underst anding, wit h a premium on simplicit y and clarit y of design.

See Aust in and Delaney (1998), Crut cher (1994) and[START_REF] Ericsson | Prot ocol analysis: Verbal reports as data[END_REF].

T here exist s however an increasing t endency in Economics t o use subject s' self-report s t o explain laborat ory choices and go beyond using t his informat ion as just anecdot al evidence. A successful example is Apest eguia et al.(2007).

Not ice t hat unercut t ing rivals' choices is a cognit ively demanding reasoning process according t o t he lit erat ure on K-level t hinking (st art ing wit h St ahl and Wilson 1994).

Comment does not cont ain economic t heories or about how … rms compete, etc.Does not mention this issue

Government of Cat alonia (2009SGR-00169).

Yo elijo este precio puesto que siempre me aseguro ganar 20 y también tengo una probabilidad relativamente alta de conseguir otros 20 por tener un precio menor al de la otra empresa.

The price that I choose is: 20

You have this space for whatever you need: I choose this price because I will win 20 for sure, and also I have a relatively high probability of getting other 20 extra points by setting a lower price than the other firm. Porque cuando mi precio es más bajo yo gano más puntos y es igual para la otra empresa cuando tiene el precio bajo. Ganamos y perdemos ambos con probabilidad de un medio porque cuando uno gana el otro pierde unos puntos. Únicamente ganan ambas empresas cuando tienen igual precio porque no pierden sus beneficios y no compiten en precio.

The price that I choose is: 20

You have this space for whatever you need:

Because the lower my price is the more points I win and it is the same for the other firm when the price is low. We both win or lose with probability one half because when one wins the other loses some points. Only both companies win when they have the same prices because they don't lose their profits and they don't compete in prices. El precio que yo elijo es 20 porque es con el único precio que me aseguro ganar y a la misma vez es más seguro que ganemos los dos.

The price that I choose is: 20

You have this space for whatever you need:

The price that I choose is 20 because it is the only price at which I make sure I win and at the same time is more certain that we both win. Porque teniendo en cuenta que la empresa del sector en la que trabajo es de competencia perfecta no me arriesgo a poner un precio muy alto porque las pérdidas (en puntos) serían mayores y porque tengo más probabilidades de que mi competencia ponga un precio mayor.

The price that I choose is: 40

You have this space for whatever you need:

Because taking into account that the firm that I work for is in a perfect competitive market, I do not risk myself setting a low price because loss (in terms of points) would be higher and because I have more probabilities that my rival sets a higher price.

A c c e p t e d M a n u s c r i p t Como en la prueba lo que cada uno quiere es conseguir es unos puntos para la meta final, escoger un precio mas bajo significaría asegurar (prácticamente) puntuación, tanto más baja como mas alta sería la probabilidad de éxito.

The price that I choose is: 50

You have this space for whatever you need:

This task is all about winning points to get to the final goal, choosing a lower price would mean (practically) making sure you get some points, depending on the probability of success. El precio que yo elijo es: 50

Tienes este espacio para lo que necesites:

Porque creo que la mayoría de la gente fijara un precio mayor al de 50 entonces tendré más posibilidades de llevarme 50+20=70.

The price that I choose is: 50

You have this space for whatever you need:

Because I think that most of the people will set a price higher than 5, then I will have higher probabilities of winning 50+20=70.

A c c e p t e d M a n u s c r i p t

SUBJECT 101

El precio que yo elijo es: 50

Tienes este espacio para lo que necesites:

Porque así el precio de él casi seguro será mayor y me llevo yo su precio.

The price that I choose is: 50

You have this space for whatever you need:

Because his price will be almost be higher than mine and I will win his price.

A c c e p t e d M a n u s c r i p t

SUBJECT 110

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

The price that I choose is: 60

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 118

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Elijo este precio porque me parece un precio intermedio y creo que puede ser muy competitivo con la otra empresa.

The price that I choose is: 60

You have this space for whatever you need:

I choose this price because it seems to be an intermediate price and I think it might be competitive against the other firm.

A c c e p t e d M a n u s c r i p t

SUBJECT 119

El precio que yo elijo es: 60

Tienes este espacio para lo que necesites:

Porque es el valor intermedio.

The price that I choose is: 60

You have this space for whatever you need:

Because it is the average value.

A c c e p t e d M a n u s c r i p t

SUBJECT 126

El precio que yo elijo es: 64

Tienes este espacio para lo que necesites:

Es un precio no muy alto para tratar de ganar la cuota de mercado a la otra empresa y por lo tanto la cantidad demandada de nuestro producto sea mayor.

The price that I choose is: 64

You have this space for whatever you need:

This price is not too high in order to try to win the other`s market share, thus our product's demand might be higher.

A c c e p t e d M a n u s c r i p t

SUBJECT 129

El precio que yo elijo es: 65

Tienes este espacio para lo que necesites:

Por ser ligeramente superior a la media.

The price that I choose is: 65

You have this space for whatever you need:

Because it is slightly above the average. Es un precio que está en la mitad y el precio seguramente no estará muy por debajo o muy por encima del que ponga mi compañero.

The price that I choose is: 70

You have this space for whatever you need:

This price is in the middle and surely this price will not be far below or far above of my partner's price.

A c c e p t e d M a n u s c r i p t

SUBJECT 171

El precio que yo elijo es: 80

Tienes este espacio para lo que necesites:

Mi razón es que el precio medio entre los dos precios del intervalo que es igual a 70, pero luego he decidido arriesgarme y subir el precio a 80.

The price that I choose is: 80

You have this space for whatever you need:

Mi reason is that this is the average price between the two interval's prices, but the I have decided to risk and set the price at 80.

A c c e p t e d M a n u s c r i p t SUBJECT 172

El precio que yo elijo es: 80

Tienes este espacio para lo que necesites:

The price that I choose is: 80

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 184

El precio que yo elijo es: 80

Tienes este espacio para lo que necesites:

Supongo que la empresa rival querrá llevarse un mínimo de 80 puntos por lo cual fijara un precio suponiendo que yo optaré por uno mayor.

The price that I choose is: 80

You have this space for whatever you need:

I suppose that my rival wants to win at least 80 points therefore he will set a price thinking that I will choose a higher one.

A c c e p t e d M a n u s c r i p t

SUBJECT 185

El precio que yo elijo es: 80

Tienes este espacio para lo que necesites:

Porque me gusta este número.

The price that I choose is: 80

You have this space for whatever you need:

Because I like this number.

A c c e p t e d M a n u s c r i p t

SUBJECT 187

El precio que yo elijo es: 80

Tienes este espacio para lo que necesites:

The price that I choose is: 80

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 188

El precio que yo elijo es: 80

Tienes este espacio para lo que necesites:

Porque 20 es muy bajo y 120 es muy alto, de precio en 80 obtendría beneficios.

The price that I choose is: 80

You have this space for whatever you need:

Because 20 are too low and 120 too high, with 80 as price I get profits.

A c c e p t e d M a n u s c r i p t

SUBJECT 190

El precio que yo elijo es: 80

Tienes este espacio para lo que necesites:

Los 80 puntos los escojo con el objeto de que muchos tomaran una decisión alta de puntos, pero si no es el caso he marcado una decisión media alta.

The price that I choose is: 80

You have this space for whatever you need:

I choose 80 points with the objective that many of them will choose a high quantity of points, if not; I have taken a mid-high decision.

A c c e p t e d M a n u s c r i p t

SUBJECT 195

El precio que yo elijo es: 85

Tienes este espacio para lo que necesites:

Cuanto mayor sea el precio menor es la probabilidad de que se fije a dicho precio, por lo que tomo un "riesgo medio", propongo un precio moderado, que no llegue a ser excesivo.

The price that I choose is: 85

You have this space for whatever you need:

The higher the price, the smaller the probability of setting that price, therefore I took a "moderate risk", I propose a moderate price, a not excessive one. The price that I choose is: 100

You have this space for whatever you need:

80-20=60

A c c e p t e d M a n u s c r i p t

SUBJECT 213

El precio que yo elijo es: 110

Tienes este espacio para lo que necesites:

The price that I choose is: 110

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 214

El precio que yo elijo es: 110

Tienes este espacio para lo que necesites:

The price that I choose is: 110

You have this space for whatever you need:

A c c e p t e d M a n u s c r i p t

SUBJECT 218

El precio que yo elijo es: 110

Tienes este espacio para lo que necesites:

Pongo 100 porque me arriesgo a ganar 110+5, pero no pierdo nada, porque la otra empresa apostara también alto pero pierdo 5 puntos del precio fijado.

The price that I choose is: 70

You have this space for whatever you need:

I set 100 because I can win 110+5, I do not lose anything, because the other firm will bet with a high price but I lose 5 points of the set price.

A c c e p t e d M a n u s c r i p t

SUBJECT 219

El precio que yo elijo es: 118

Tienes este espacio para lo que necesites:

No influyo en la otra empresa entonces me arriesgo de esta manera a sacar 20 puntos menos que su puntuación, porque soy incapaz de poner un precio bajo.

The price that I choose is: 118

You have this space for whatever you need: He elegido 119 porque es con la que obtendría mas beneficios si la otra empresa fija el máximo precio (120), y la otra empresa obtendrá 99 con lo cual le sacaría 39 puntos de diferencia.

The price that I choose is: 119

You have this space for whatever you need: El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

Por arriesgarme

The price that I choose is: 120

You have this space for whatever you need:

In order to take a risk.

A c c e p t e d M a n u s c r i p t

SUBJECT 228

El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

Si ambos fijamos le mismo precio ambos ganamos lo mismo, en el caso en que haya información perfecta para todos (todos hacemos la misma prueba bajo las mismas condiciones y la lectura de la prueba fue para todos) todos deberíamos ganar lo máximo.

The price that I choose is: 120

You have this space for whatever you need:

If we set the same price we would win the same amount, if there is perfect information (we all do the same test, under the same conditions and the reading of the test was for everyone) we all would wish to win the maximum. Porque si la otra empresa escoge este mismo precio ambos salimos ganando puesto que nos llevaríamos una puntuación bastante alta, y por lógica seria uno de los precios más razonables para escoger porque el beneficio es mayor para ambas empresas, no perdiendo ninguna.

The price that I choose is: 120

You have this space for whatever you need:

Because if the other firm chooses the same price we win a very high number, it is logic that this is one of the most reasonable prices to choose because the profits are higher for both companies, without losing.

A c c e p t e d M a n u s c r i p t

SUBJECT 235

El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

Al fijar el precio máximo, si la empresa contra la que se compite fija un precio menor solo saldremos perdiendo 5 puntos de penalización por lo cual no es una perdida grande, en este caso se obtendrá un alto beneficio, por otro lado, si el precio fijado de la empresa rival es igual, en ese caso, ambos obtendremos un buen beneficio, el único caso en que la empresa competidora salga ganando es si fija un precio inferior al nuestro en un intervalo [111, 119].

The price that I choose is: 120

You have this space for whatever you need:

By setting the maximum price, if the rival sets a lower price we would lose only 5 points of penalty, not a big lost, in this case I would obtain a big profit, on the other hand, if the rival's price is equal, in that case we both obtain good profits, the only case in which the rival wins is if his price is lower than ours en the interval [111, 119].

A c c e p t e d M a n u s c r i p t

SUBJECT 236

El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

La manera de ganar los dos es fijar un precio alto si reducimos el precio ganaremos poco con +/-5 de diferencia así que pongo un valor alto y confío en que el de la empresa rival sea alto para ganar bastante. Fijar un precio bajo nos perjudica a los dos.

The price that I choose is: 120

You have this space for whatever you need:

The way to win both is by setting a high price if we reduce the price we will win a little with +/-5 of difference, thus I set a high value y I hope the rival sets a high price to win a lot. Setting a low price is detrimental to both of us.

A c c e p t e d M a n u s c r i p t

SUBJECT 237

El precio que yo elijo es: 120

Tienes este espacio para lo que necesites:

Porque de esta manera si coincido con ella gano la máxima puntuación si no pues depende de lo que ella haya puesto. No me importa perder 5 puntos si puedo ganar 120si coincido con la otra empresa.

The price that I choose is: 120

You have this space for whatever you need:

Because in this way if we coincide I win the maximum number, if not, it depends of her decision; I do not care about losing 5 points if I can win 120 if I coincide with the other firm. You have this space for whatever you need: