Experimental Units

The money you make in this experiment is based on the number of units you hold at the end of each period.

For each unit you hold, you will be paid a sum of money at the end of each period.

Each unit is worth a different amount.

Your value table tells you how much each extra unit is worth.

You will only earn money for the first ten units. Beyond ten, extra units are worth nothing to you. An example value table is shown below.

Example value table:

No. of units held	Marginal value
1	$10
2	$9
3	$8
4	$7
5	$6
6	$5
7	$4
8	$3
9	$2
10	$1
11+	$0

In this example, the first unit is worth $10, the second $9, the tenth is worth $1.

All units are surrendered at the end of each period.

QUESTION (FRENZEL): If at the end of a period the above participant holds 3 units, how much will they be paid for their units ? (Correct answer = 10 + 9 + 8 = 27)

When you have read the above, please proceed to the next page.

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Last Modified: 18 October 2007