APPENDICES

Subjects in room A will receive 2 envelopes. Here are the instructions included in each envelope. Envelope 1 Thank you for participating in the experiment. There will be two roles in this experiment, A and B. You are randomly chosen to be player A and paired with one subject in room B. The experiment will last around 30 minutes and you will earn anything in the range from $0 to $30, depending on your randomly assigned partners decision and your own decision. In 2 rounds of the experiments, you are randomly assigned with a different partner. This is round 1. You and your partner are given $10 each in the beginning of round 1; and you both know the amount the other person gets. Your partner is instructed to keep that $10. However, you can make a decision of how much of the $10 you want to send to your partner. The amount you sent will be tripled by the experimenters before reaching room B. After receiving the tripled amount, your partner will need to make their decision of how much to send back to you. The amount he/she send back to you will not be tripled. Please indicate below the amount you want to send to your partner: $ ___________________

Envelope 2 This is round 2. You and your partner are given $10 each in the beginning of round 2. The only difference compared to round 1 is that your partner receives information that you received $5 of endowment. Your partner is instructed to keep his/her $10. However, you can make a decision of how much of the $10 you want to send to your partner. The amount you sent will be tripled by the experimenters before reaching room B. If you decide to send more than $5 to room B, your partner will be informed that the amount exceed $5 is your own money that you invest in. After receiving the tripled amount, your partner will need to make their decision of how much to send back to you. The amount he/she send back to you will not be tripled. Please indicate below the amount you want to send to your partner: $ ___________________

Subjects in room B will receive 2 envelopes. Here are the instructions included in each envelope. Envelope 1 Thank you for participating in the experiment. There will be two roles in this experiment, A and B. You are randomly chosen to be player B and paired with one subject in room A. The experiment will last around 30 minutes and you will earn anything in the range from $10 to $30, depending on your randomly assigned partners decision and your own decision. In 2 rounds of the experiments, you are randomly assigned with a different partner. This is round 1. You and your partner are given $10 each in the beginning of round 1; and you both know the amount the other person gets. You can keep your $10. However, your partner is instructed to make decision of how much of his/her $10 he/she wants to send to you. The amount he/she sent to you will be tripled by the experimenters before reaching you. After receiving the tripled amount, you will need to make decision of how much to send back to your partner. The amount you send back will not be tripled. Please indicate below the amount you want to send back to your partner: $ ___________________

Envelope 2 This is round 2. You are given $10 in this round, and your partner is given $5. You both know the amount the other person gets. You can keep your $10. However, your partner is instructed to make decision of how much of his/her $5 he/she wants to send to you. The amount he/she sent to you will be tripled by the experimenters before reaching you. If he/she sends you more than $5, the amount exceeding $5 is his/her own payoff from round 1 that he/she wants to invest in the game. After receiving the tripled amount, you will need to make decision of how much to send back to your partner. The amount you send back will not be tripled. Please indicate below the amount you want to send back to your partner: $ ___________________