QUALTRICS - TRADE GAME

During the experiment, you will play a trading game where your objective is to maximize your payoff at the end of each round/game. You will be given an initial budget of 100/20 credits which you can use to purchase insurance that protects you against making losses (which will reduce your payoff) in each round. We will determine your role in this game in the next screen. If you are determined to be a buyer you will remain a buyer for the duration of the whole game, and similarly if you are determined to be a seller. You will play this game 4 times, whereby each game consists of 10 rounds. Your job in each round is to judge the probability of a ball drawn from one of two urns, both containing red and green balls, and indicate at which price you are willing to buy/sell an insurance contract that prevents losses. Your performance will be assessed based on how close your trading behaviour is to rational market behaviour. Hence during the game, you should try to provide answers as realistic/analytical as possible.