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So they set up, you know, a standard classic laboratory psychology paradigm, which does not necessarily translate to the real world. So let’s keep that in mind. And they set up two paradigms. One of them was a coin flip paradigm, and one of them was a die roll paradigm. And basically, they said, you know, if you roll heads, you get money. If you roll tails, you get no money. Or if you flip heads, if you flip tails, and then on the die paradigm, they went into levels. So they said, you know, if you roll a one, you get $1, a two, you get $2, a three $3. But if you roll a six, that’s unlucky, so you get no dollars. So those are basically the two experiments that they ran.

summary : the speaker is explaining two paradigms of a psychological experiment

I can't figure out the meaning of the emboldened part....

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The bold part means roughly "they divided it into levels". Level 1 is rolling a one which gets you $1.

I would not have known what it meant without the explanation afterwards, though.

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