Summary

• In this experiment you are either an investor or a project manager.
• The experiment consists of eight different rounds.
• In each round, each investor chooses a project manager, who then chooses a project that either succeeds or fails with a certain probability.
• These employed managers then select a second project, which again either succeeds or fails.
• For the third and final project in a round, an investor can decide either to stay with the current project and manager, or have a new manager choose a new project.
• For each of the first two projects an investor will earn 300 ECU in case of success and 100 ECU in case of failure. The third project can have different earnings.
• A manager earns 200 ECU for each of the first two projects, even if not employed. For the third project a manager earns 200 ECU if employed, and 0 ECU if not employed.
• Only one of the eight rounds (with three projects each) will be randomly selected for payment.

8/8