MobLab
Instructions
Aa

# Bargaining

## How to Play

• You will be paired into groups of two.
• Players within a pair make alternating offers on how to split a sum of money.
• Use the slider to choose the division and press Submit.
• Each time an offer is rejected, the sum of money decreases by the Shrink Rate (shown on your screen).
• The game ends when one of the following happens:
• An offer is accepted.
• The money to be divided shrinks to \$0.
• The offer made in the final round is rejected.

## Example

• Assume a four-round game starting with \$100 where the Shrink Rate is 10%.
• In round 1, Player 1 proposes a division of \$100.
• If Player 2 rejects this offer, then in round 2 Player 2 proposes a division of \$90.
• If Player 1 rejects this offer, then in round 3 Player 1 proposes a division of \$81.
• If Player 2 rejects this offer, then in round 4 Player 2 proposes a division of \$72.
• Player 1 chooses whether to accept this final offer.
• Payoffs are determined by an accepted offer. Players earn \$0 if no offer accepted.