Table 1

Study 1 experimental procedure

StageMain steps
Player A Data Collection 
  • Collect Player A data for 100 American participants and 100 Indian participants

 
Player A's Experiment Procedure A.1 Introduction and Scenario Setup for Player A 
  • Player A reads the vignette to understand the game scenario and pricing dynamics

  • Player A is informed that they will set a price for part A of a product, which will then influence the pricing decision of Player B for part B

  • Attention checks

 
A.2 Treatment Application 
  • Player A is shown the treatment screen, which includes a flag and contextual information about Player B's nationality and location

  • Depending on random assignment, Player A sees either

    1. Treatment 1: An Indian flag (if paired with an Indian Player B)

    2. Treatment 2: An American flag (if paired with an American Player B)

 
A.3 Pricing Decision 
  • After viewing the treatment, Player A sets a price for part A (pA)

 
A.4 Finalisation for Player A 
  • Player A is informed that they will learn their bonus after Player B makes their pricing decision

 
Player B Data Collection 
  • Player Bs are matched with a Player A

  • Player B's vignette is prepared with Player A's price and nationality

  • Collect 200 observations for Player B

 
Player B's Experiment Procedure B.1 Introduction and Scenario Setup for Player B 
  • Player B reads the vignette to understand the game scenario and the pricing dynamics

  • Player B is informed that they will set a price for part B of a product after learning Player A's location and price set by Player A

  • Attention checks for Player B

 
B.2 Treatment Application 
  • Player B is shown the treatment screen, which includes a flag and contextual information about Player A's nationality and location, along with the price set by Player A

  • Depending on random assignment, Player B sees either

    1. Treatment 1: An Indian flag (if paired with an Indian Player A)

    2. Treatment 2: An American flag (if paired with an American Player A)

 
B.3 Pricing Decision 
  • After viewing the treatment and learning Player A's price (pA), Player B sets their price for part B (pB)

 
B.4 Finalisation for Player B 
  • Player B's pricing decision is finalised, and Player B is informed of their bonus based on the players' performances calculated using the price (pC=pA+pB) and random demand

 
Payment for both Players A and B 
  • Player A receives a bonus payment proportional to their and Player B's economic performance in the game

  • Player A receives a bonus payment proportional to their and Player A's economic performance in the game

 
StageMain steps
Player A Data Collection 
  • Collect Player A data for 100 American participants and 100 Indian participants

 
Player A's Experiment Procedure A.1 Introduction and Scenario Setup for Player A 
  • Player A reads the vignette to understand the game scenario and pricing dynamics

  • Player A is informed that they will set a price for part A of a product, which will then influence the pricing decision of Player B for part B

  • Attention checks

 
A.2 Treatment Application 
  • Player A is shown the treatment screen, which includes a flag and contextual information about Player B's nationality and location

  • Depending on random assignment, Player A sees either

    1. Treatment 1: An Indian flag (if paired with an Indian Player B)

    2. Treatment 2: An American flag (if paired with an American Player B)

 
A.3 Pricing Decision 
  • After viewing the treatment, Player A sets a price for part A (pA)

 
A.4 Finalisation for Player A 
  • Player A is informed that they will learn their bonus after Player B makes their pricing decision

 
Player B Data Collection 
  • Player Bs are matched with a Player A

  • Player B's vignette is prepared with Player A's price and nationality

  • Collect 200 observations for Player B

 
Player B's Experiment Procedure B.1 Introduction and Scenario Setup for Player B 
  • Player B reads the vignette to understand the game scenario and the pricing dynamics

  • Player B is informed that they will set a price for part B of a product after learning Player A's location and price set by Player A

  • Attention checks for Player B

 
B.2 Treatment Application 
  • Player B is shown the treatment screen, which includes a flag and contextual information about Player A's nationality and location, along with the price set by Player A

  • Depending on random assignment, Player B sees either

    1. Treatment 1: An Indian flag (if paired with an Indian Player A)

    2. Treatment 2: An American flag (if paired with an American Player A)

 
B.3 Pricing Decision 
  • After viewing the treatment and learning Player A's price (pA), Player B sets their price for part B (pB)

 
B.4 Finalisation for Player B 
  • Player B's pricing decision is finalised, and Player B is informed of their bonus based on the players' performances calculated using the price (pC=pA+pB) and random demand

 
Payment for both Players A and B 
  • Player A receives a bonus payment proportional to their and Player B's economic performance in the game

  • Player A receives a bonus payment proportional to their and Player A's economic performance in the game

 
Source(s): Authors' own work

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