This study examines the effects of initial endowment size on individual behavior in a\nbinary choice game with no dominant strategy. Subjects make decisions in two, theoretically identical\nsequences, differing in initial endowment levels only. Each decision involves a choice between an\noption with a certain loss and an option with a loss that is increasing in the number of individuals\nwho choose it. For the higher endowment level, all subjects are guaranteed a positive payoff. For the\nlower endowment level, subjects who choose the uncertain loss option could receive a negative\npayoff. The results indicate that in the first round of play, subjects with the higher endowment level\nchoose the certain loss option significantly more often than subjects with the lower endowment level.\nThere are, however, no significant differences in behavior beyond the first few rounds of play.
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