ABSTRACT
One potential explanation for the inability of these instruments to induce individuals to the socially optimal outcome is that subjects do not understand the decision making environment. For example, Oxoby and Spraggon (2005) have shown that, among participants who understand the concept of Nash equilibrium, these instruments induce individually and socially optimal decision making. With this in mind, we investigate making the decision environment and the corresponding incentives clearer to decision makers (i.e. recommended play): we explain the environment and the concept of “marginal decision making” carefully to participants. In explaining the environment, we hope participants will not only be able to identify their dominant strategies, but also realize the reward and punishment properties of the instrument.
