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Instruction Page 2
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You will have one of the two types of the wage decision in each round:
One kind of Jobs
Two kinds of Jobs
There are two empty job positions. You can choose to hire two workers, one worker, or no workers.
>There are two workers, Ann and Bob with different qualities
You will submit ONE wage offer.
Each worker brings different revenue.
Each worker has a minimum willingness to accept, which means the minimum wage that the worker would accept.
The worker accepts any wage higher than or equal to the minimum willingness to accept
In that case, your profit is: 0.5 x (Revenue the worker brings you - Wage Offer)
Otherwise, the worker rejects the offered wage
In that case, your profit is 0
Your final profit is the sum of the profit you get from all workers.
Below is an example of this wage decision.
Revenue from each Worker
Ann
Bob
30
20
Minimum Willingness to Accept
Ann
Bob
5
15
Suppose that you choose the wage of 10. Then only Ann would accept the job because 10 is greater than Ann's minimum willingness to payoff and less than Bob's
minimum willingness to payoff
From Ann, you get
0.5 x (Revenue from Ann - Your wage offer)
= 0.5 x (30 - 10) = 10.
Also, Bob rejects your offer. Thus payoff from Bob will be 0.