Instructions - Page 1 of 4

• Rounds

The experiment consists of 15 rounds.

• Sellers

The experiment is for 2 players, who are both sellers in the same market. Your earnings depend on the decisions made by you and by the other seller.

• Multiple Random Matchings

You will be re-matched at the start of each round with another person selected at random from the other participants. There will be a new random matching each round, so you may or may not be matched with the same person in two consecutive rounds. The matchings are random, so you are no more likely to be matched with one participant than with another.

• Price Decisions

You begin each round by choosing a price between £1.50 and £15.00 inclusive. You cannot see the other seller's price when choosing your price and vice versa.

• Sales Quantity

The buyer purchases an equal quantity from both sellers. The quantity purchased from each seller is inversely related to the sum of the 2 prices demanded by the sellers: the higher the total price, the lower the quantity.

Your sales quantity is defined by the following formula:

Your sales quantity = 15.00 - (total price).