Experimental Protocol – not intended for publication

[WHEN PARTICIPANTS ARRIVE:]

[There is a desk for registration and payouts. Participants draw a random player number. Upon arrival the participants already receive their show-up fee]

[To each participant during registration]: “Good afternoon/morning, we are glad that you are participating in this workshop. We will shortly tell you what the activity is about. Please enter the room and look for the seat with your participant number. Once everybody is here we will start the activity”

[Participants are assigned a seat according to the player number. All participants are seated away from each other.]

[Pre-questionnaire with basic information while waiting]

[WELCOMING THE PARTICIPANTS]

Thank you all for coming today. My name is [NAME] and I am a member of a research team supported by the Ethiopian Development Research Institute, the University of Innsbruck and Planet Guarantee that is going to conduct a workshop in your community during this month.

Together with my colleagues I want to conduct some games with you. In these games you can earn real money that will be paid to you privately in cash at the end, I am here for a research study on decision making. This kind of study is conducted with people like you and me all over the world. In the games you will have to make decisions that will influence your personal earning and the earnings of others. In the games you can earn up to 100 Birr. The money paid to you is not our private money but it is given to us for research purposes. We are interested in your decision during the activity and it is very important to bear in mind that there are no “right” or

“wrong” answers. The whole procedure will last for about one hour. Thank you in advance for your effort and time

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Before we start to explain the games, we want to announce some general rules that you should know:

1. If at any time you find that this is something that you do not wish to participate in for any reason, you are free to leave. But if you already know that you will not be able to stay for one hour, then you should not try to participate, because otherwise we cannot use the results.

2. In the workshop, your identity will be kept anonymous. This means that except for the person calculating payments, no one will come to know the decisions you made or the money you earned. Instead of using your name, we assigned you a number (show sample player number that we will use throughout the workshop. Please do not lose this card.

3. You will be paid 20 Birr for coming to the workshop, which you already received at the registration plus the additional earnings that you have made in the decision task randomly chosen for payment. We will keep a record of your earnings in all the decision tasks to make sure that you receive the correct amount

4. If you have questions during the games just raise your hand and wait until one of the assistants comes to you. Then you can ask your question in private and the assistant will answer it.

5. We will draw a card at the end to determine which of the three games will be paid out to you. [Show cards with numbers] This is why the outcomes in one game have no influence on the other games. So if you play a game, don’t worry what happened in the games before. Just take each game seriously on its own, because it might be the one that is paid out.

Thank you in advance for your effort and time. We will now begin with the instructions for the first game

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[THE ORDER OF GAMES 1 and 2 VARIES IN THE DIFFERENT SESSIONS]

[GAME 1]

In this game you are randomly matched with another player who is not in this room today. You will not learn the whole identity of the person you are matched with, and your partner will never learn about your identity. The only thing you will know about the other person is his prename and that he lives in Addis Ababa as well. The person you are matched with is not in this group today but we took his/her decisions separately. In this Game you will be called Player A and the other Player outside will be called Player B.

You receive an amount of 80 Birr and player B 0 Birr. You can decide whether to keep the money for yourself or transfer to player B. The amount that you transfer to Player B must be a number from the set (0, 10, 20, 30, 40, 50, 60, 70, 80).You are not obliged to transfer anything.

The amount can also be 0.

The amount you transfer will be subtracted from your initial 80 Birr you received at the beginning of the game. You yourself will keep the amount you did not transfer. This is the amount relevant for your payout in case this game will be chosen for the final payout.

[PLEASE READ THE FOLLOWING EXAMPLES LOUDLY, SLOWLY AND CLEARLY.

DEMONSTRATE THE PAYOFF CONSEQUENCES BY SHOWING THE DECISION SHEET AND DEMONSTRATING PAYOFFS WITH PLAY MONEY FOR EACH SCENARIO]

If you decide to transfer 40 from your initial 80 Birr Player B will receive 40 Birr and you will receive 40 Birr.

If you decide to transfer 0 Birr from your initial 80 Birr Player B will receive 0 Birr and you will receive 80 Birr

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If you decide to transfer 80 Birr from your initial 80 Birr Player B will receive 80 Birr and you will receive 0 Birr.

Do you have any questions?

Before we distribute the decision sheets, please do not forget that you are not allowed to communicate with other participants in the room.

It is very important to keep in mind that the decisions are absolutely private and that your decision will not be shown to anybody else.

We will now distribute the sheets on which you can make your private decision.

[DECISION SHEET]