# Humboldt-Universität zu Berlin - Wirtschaftswissenschaftliche Fakultät

Instructions Lottery 2

## Instructions Lottery 2

You can now choose between 5 different lotteries. In each lottery you can play for two possible payouts. Each payout can occur with a probability of 50 percent. By choosing the lottery, you decide on the amount of the potential payouts. Please choose the one lottery you would like to play. This decision is potentially relevant to your payout.
The potential payout is calculated as follows: Since the probabilities for each of the two payouts are 50%, the lottery is equivalent to a coin toss. By choosing the lottery, you determine the size of the payouts that occur on "heads" or "tails". Once you have chosen one of the five lotteries, the probabilities of the two payouts are implemented. A random mechanism decides for each player which of the two payouts will occur. The random mechanism corresponds to the toss of an imaginary coin. If "heads" is tossed, payout 1 will occur, if "tails" is tossed, payout 2 will occur. The values of payout 1 and 2 depend on your decision.

At the end of the study, another random mechanism decides which 3 study participants will actually be paid the lottery prize in this part of the experiment. The probability that you will be drawn is about 1:50.
So, please remember: again, your decision potentially involves a lot of real money.