Let's play a game.
The aim is to have the most points at the end of the game.
On every turn of the game, you can either:
- Lose 1 point and take a card. A card is worth points.
- Trade in a card for points. This ends the game (all other cards are thrown away).
We will play the game 5 times.
You will need 96 cards, normally distributed around 10 with a standard deviation of 5:
| Value | Number of Cards |
|---|---|
| 1 / 2 / 18 / 19 | 2 |
| 3 / 17 | 3 |
| 4 / 16 | 4 |
| 5 / 15 | 5 |
| 6 / 14 | 6 |
| 7 / 8 / 12 / 13 | 7 |
| 9 / 10 / 11 | 8 |
The aim of this experiment is to gather information on how people react in a situation where there is a cost for getting more information. We believe this is similar to deciding which products to buy: we exchange our own time in order to find more information.
We expect the results to follow a model consistent with the marginal value thorem.
- Can we get closer to the real-life situation of 'spending time to get more information'?