{% extends "global/Page.html" %} {% block title %}Part I{% endblock %} {% block content %}
Instructions
Suppose that you are selling units of a good and that you have to choose between two sale contracts (A and B) to be realized in the future.
Caution:
Even though the future is uncertain, you know that most of the time there will be no surprises (the normal state), and the contract will be realized as it is.
However, on some occasions, an unexpected event will impose constraints on the number of units that you are allowed to sell (the atypical state).
The table below summarizes these states and their probability of occurrence:
| {{ 'State' }} | {{ 'Description' }} | {{ 'Probability' }} |
|---|---|---|
| {{ 'Normal' }} | {{ 'No costs: contract realized as firmed' }} | {{ '8/10 (or 80%)' }} |
| {{ 'Atypical' }} | {{ 'You must pay a tax for every unit sold above 35' }} | {{ '2/10 (or 20%)' }} |
The game
Your job is to choose between two contract options (A or B).
After choosing, you will be able to find out what the future is.
Your payoff for the round will be realized in the sequence.
Note
There will be one practice round, followed by three real rounds.
Your payoff in points will be recorded for each of the rounds.
The payoff info will be stored until the end of the experiment.
In the end, one of your recorded payoffs (from parts I and II) will be randomly selected for pay, and converted to US dollars.