Decision-Making: An Experiment
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.
Instructions for the Laboratory
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'?