Firm A:
Each employee answered 5 questions correctly.
Initial surplus for the firm is equal to 100.
The manager broke the law and doubled the surplus to 200.
The selected employee chose to blow the whistle. Payoffs:
The selected employee earns 125 points (+100 points from his 5 correct answers, +50 points from 25% of the firm surplus,
-25 points from blowing the whistle).
The other employee earns 150 points (+100 points from his 5 correct answers, +50 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 150 points (+120 as fixed income, +100 from 50% of the firm surplus, -70 from the selected employee blowing the whistle)
Firm B:
The first employee answered 5 questions correctly.
The second employee answered 4 questions correctly.
Initial surplus for the firm is equal to 90.
The manager did not break the law and engaged in the multiplication task.
The managers gave 6 correct answers, so surplus was doubled to 180.
The first employee was selected, and they chose to blow the whistle. Payoffs:
The selected employee earns 145 points (+100 points from his 5 correct answers, +45 points from 25% of the firm surplus).
The manager did not break the law so the decision to blow the whistle was not implemented.
The other employee earns 125 points (+80 points from his 4 correct answers, +45 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 210 points (+120 as fixed income, +90 from 50% of the firm surplus).
The manager did not break the law.
Firm C:
The first employee answered 6 questions correctly.
The second employee answered 6 questions correctly.
Initial surplus for the firm is equal to 120.
The manager did not break the law and engaged in the multiplication task.
The managers gave 2 correct answers, so surplus was not doubled.
The first employee was selected, and they chose to blow the whistle. Payoffs:
The selected employee earns 150 points (+120 points from his 6 correct answers, +30 points from 25% of the firm surplus).
The manager did not break the law so the decision to blow the whistle was not implemented.
The other employee earns 150 points (+120 points from his 6 correct answers, +30 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 180 points (+120 as fixed income, +60 from 50% of the firm surplus).
The manager did not break the law.
Members of the public:
Each member of the public earns 120 points (+140 as fixed income, -20 because in total 1 manager broke the law).
{{ endif }}
{{ if random == True}}
Firm A:
Each employee answered 5 questions correctly.
Initial surplus for the firm is equal to 100.
The manager broke the law and doubled the surplus to 200.
Firm A was randomly selected to win, so their surplus was increased by 50% to 300.
The selected employee chose to blow the whistle. Payoffs:
The selected employee earns 150 points (+100 points from his 5 correct answers, +75 points from 25% of the firm surplus,
-25 points from blowing the whistle).
The other employee earns 175 points (+100 points from his 5 correct answers, +75 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 200 points (+120 as fixed income, +150 from 50% of the firm surplus, -70 because the selected employee blew the whistle)
Firm B:
The first employee answered 5 questions correctly.
The second employee answered 4 questions correctly.
Initial surplus for the firm is equal to 90.
The manager did not break the law and engaged in the multiplication task.
The manager gave 6 correct answers, so surplus was doubled to 180.
Firm B was not randomly selected to win, so their surplus was reduced by 25% to 135.
The first employee was selected, and they chose to blow the whistle. Payoffs:
The selected employee earns 133.75 points (+100 points from his 5 correct answers, +33.75 points from 25% of the firm surplus).
The manager did not break the law so the decision to blow the whistle was not implemented.
The other employee earns 113.75 points (+80 points from his 4 correct answers, +33.75 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 187.5 points (+120 as fixed income, +67.5 from 50% of the firm surplus).
The manager did not break the law.
Firm C:
The first employee answered 6 questions correctly.
The second employee answered 6 questions correctly.
Initial surplus for the firm is equal to 120.
The manager did not break the law and engaged in the multiplication task.
The manager gave 2 correct answers, so surplus was not doubled.
Firm C was not randomly selected to win, so their surplus was reduced by 25% to 90.
The first employee was selected, and they chose to blow the whistle. Payoffs:
The selected employee earns 142.5 points (+120 points from his 6 correct answers, +22.5 points from 25% of the firm surplus).
The manager did not break the law so the decision to blow the whistle was not implemented.
The other employee earns 142.5 points (+120 points from his 6 correct answers, +42.5 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 165 points (+120 as fixed income, +45 from 50% of the firm surplus).
The manager did not break the law.
Members of the public:
Each member of the public earns 120 points (+140 as fixed income, -20 because in total 1 manager broke the law).
{{ endif }}
{{ if competition == True}}
Firm A:
Each employee answered 5 questions correctly.
Initial surplus for the firm is equal to 100.
The manager broke the law and doubled the surplus to 200.
The other firms have surpluses of 180 and 120, so firm A won and their surplus was increased by 50% to 300.
The selected employee chose to blow the whistle. Payoffs:
The selected employee earns 150 points (+100 points from his 5 correct answers, +75 points from 25% of the firm surplus,
-25 points from blowing the whistle).
The other employee earns 175 points (+100 points from his 5 correct answers, +75 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 200 points (+120 as fixed income, +150 from 50% of the firm surplus, -70 from the selected employee blowing the whistle)
Firm B:
The first employee answered 5 questions correctly.
The second employee answered 4 questions correctly.
Initial surplus for the firm is equal to 90.
The manager did not break the law and engaged in the multiplication task.
The manager gave 6 correct answers, so surplus was doubled to 180.
The other firms have surpluses of 200 and 120, so firm B did not win and their surplus was reduced by 25% to 135.
The first employee was selected, and they chose to blow the whistle. Payoffs:
The selected employee earns 133.75 points (+100 points from his 5 correct answers, +33.75 points from 25% of the firm surplus).
The manager did not break the law so the decision to blow the whistle was not implemented.
The other employee earns 113.75 points (+80 points from his 4 correct answers, +33.75 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 187.5 points (+120 as fixed income, +67.5 from 50% of the firm surplus).
The manager did not break the law.
Firm C:
The first employee answered 6 questions correctly.
The second employee answered 6 questions correctly.
Initial surplus for the firm is equal to 120.
The manager did not break the law and engaged in the multiplication task.
The manager gave 2 correct answers, so surplus was not doubled.
The other firms have surpluses of 200 and 180, so firm C did not win and their surplus was reduced by 25% to 90.
The first employee was selected, and they chose to blow the whistle. Payoffs:
The selected employee earns 142.5 points (+120 points from his 6 correct answers, +22.5 points from 25% of the firm surplus).
The manager did not break the law so the decision to blow the whistle was not implemented.
The other employee earns 142.5 points (+120 points from his 6 correct answers, +22.5 points from 25% of the firm surplus).
The second employee was not selected so their decision to blow the whistle was not implemented and did not cost them points.
The manager earns 165 points (+120 as fixed income, +45 from 50% of the firm surplus).
The manager did not break the law, so they did not lose any points.
Members of the public:
Each member of the public earns 120 points (+140 as fixed income, -20 because in total 1 manager broke the law).