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Winning firm

One of the three firms will win the competition and their surplus will be further increased by 50%. Each of the other two firms that did not win the competition will have their surplus reduced by 25%. The winning firm will be randomly selected.

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Winning firm

One of the three firms will win the competition and their surplus will be further increased by 50%. Each of the other two firms that did not win the competition will have their surplus reduced by 25%. The winning firm will be the firm with the largest surplus.

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Surplus distribution

The total firm surplus will be distributed as follows: The manager keeps 50% of the surplus, and each employee will keep 25%.

Payoff explanation

Paid rounds

At the end of the session, 4 rounds will be randomly selected for payment.

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