{{ block title }} Task Instructions {{ endblock }} {{ block content }} {{ if player.id_in_group == 2 }} You have been assigned to the role of Manager.

As the Manager, in each round, you will receive a budget report from the Employee and decide whether to approve the budget report and provide funding for the project or reject the budget report and provide no funding for the project.

At the start of each round, the Employee learns the actual project cost for that round. The actual project cost changes each round. The actual project cost of the project is randomly selected from the set of possible costs (0,1, 2, …, 200) in Lira. Each cost is equally likely to be drawn.

You know that the actual cost is between 0 and 200 Lira but NEVER learn the actual cost given to the employee.

If you approve the reported budget, the Employee will get to keep any difference between their reported budget and the actual cost, and you will receive 250 Lira minus the reported budget.

If you reject the reported budget, both you and the Employee will receive 0 Lira for the round.

Your compensation and the Employee’s compensation for the randomly selected round are based on the following formulas:

If you accept the reported budget:
Employee = 100 Lira + (Reported Budget – Actual Project Cost)
Manager = 250 Lira – Reported Budget

If you reject the reported budget:
Employee = 0 Lira
Manager = 0 Lira


Remember that only one round will be selected, at random, by the computer for payment at the end of the session. {{ else }} You have been assigned to the role of Employee.

At the start of each round, you will learn the actual project cost for that round. The actual project cost for each round will be randomly selected from the set of possible costs (0,1, 2, …, 200) in Lira. Each cost is equally likely to be drawn, and it is possible for a cost to be drawn more than once.

As the Employee, each round you will receive a salary of 100 Lira. After observing the actual project cost at the beginning of each round, you will report your budget to the Manager. The reported budget can range from the actual project cost to the highest possible cost of 200 Lira.

The Manager will then review your reported budget. The Manager will ONLY know that the actual project cost is between 0 and 200 Lira and NEVER learns the actual project cost.

After reviewing your reported budget, the Manager will either accept or reject your budget.

If the Manager accepts your budget, you will keep any difference between your reported budget and the actual project cost.

If the Manager rejects your budget, then both you and the Manager will receive 0 Lira for the round.

Your compensation and the Manager’s compensation for the randomly selected round are based on the following formulas:

If your budget is accepted:
Employee = 100 Lira + (Reported Budget – Actual Project Cost)
Manager = 250 Lira – Reported Budget

If your budget is rejected:
Employee = 0 Lira
Manager = 0 Lira


Remember that only one round will be selected, at random, by the computer for payment at the end of the session. {{ endif }}

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