{% load otree static %} {% block styles %} {% include '_templates/styles/intro_page.html' %} {% endblock %} {% block content %}
At the beginning of the experiment, you will receive an initial endowment of {{ participation_fee }} Pounds. During the experiment, you can earn more money by accumulating {{ currency_plural }}.
All {{ currency_plural }} you earn will be converted to Pounds at the end of the experiment. The exchange rate will be
1 {{ currency }} = {{ exchange_rate }} Pounds.
The amount earned will depend on your decisions and those of the other participants. You will be paid via PayPal after the experiment is completed.
This set of instructions describes the first part of the experiment. After you finish the first part, there will be another set of instructions for the second part. The second part is very similar to the first part.
Please read the following instructions carefully. After the instructions, you will be asked a set of questions to ensure you understand the instructions. The experiment will begin after every participant has answered all questions.
If you have any questions, please raise your hand. We will answer your questions at your cubicle.
The experiment is divided into {{ total_rounds }} rounds, {{ shock_after_rounds }} rounds in the first part and {{ rounds_part_two }} rounds in the second part.
You have been randomly assigned to one of two roles: either an employer or a worker.
You will take the role of {{ player.participant.string_role }}. You will keep this role for the entire course of the experiment.
In the first part, you will interact in a group of {{ players_in_your_group }} randomly assigned participants. Each group has {{ employers_in_your_group }} employers and {{ workers_in_your_group }} workers.
In each round, employers choose to employ zero, one, or two workers. To employ a worker, an employer needs to pay a wage. In return, employed workers provide effort. Workers choose how much effort to provide after they accept a job offer. Effort is costly to workers, so they make profits only if their effort costs are lower than the wage they receive.
On the other hand, your profits will depend on:
You make profits if the effort you receive is worth more than the wages you pay.
The first part lasts for {{ shock_after_rounds }} rounds. Each round has two phases:
1. First, a market phase lasting for {{ market_time }} seconds. During this phase, employers can submit job offers, which workers can accept. When submitting a job offer, an employer specifies two things
Once employers submit offers, workers get to see them and decide which to accept. The first worker to accept an offer will get it. Each worker can accept at most one job offer in each round. Each employer can employ at most two workers. Unaccepted offers are deleted at the end of the market phase.
You can also send a private re-employment offer to each worker you employed in the previous round. Only the worker to whom the offer is directed can accept a private offer.
2. After the market phase, workers who accepted a job offer enter the production phase. In this phase, workers decide their effort. Workers are not forced to provide the effort desired by the employer. They are free to choose any effort.
Once all workers have chosen their effort, everyone's profits are calculated and the next round starts. The sum of your profits across all rounds will determine your earnings for the experiment.
Each round begins with a market phase.
The figure below shows a preview of the market phase screen. The white box below the timer gives information about the state of the market.
To make a job offer, use "Trading box" in the middle of the page. You can send up to two job offers at the same time.
To send a job offer, you must:
Once you submit a job offer, it will appear in the table "Open offers" at the bottom of the page. See the figure below for an example of how the screen will look.
Workers can accept an offer as long as it is "open". You can have up to two open job offers at a time. You can also submit no offer at all. To withdraw or change a job offer, click on "Cancel Offer".
Open offers from all employers are visible to everyone in the "Open Offers" table. Workers can accept at most one offer during each round, and each job offer can only be accepted by one worker. If your offer is accepted, you will see a notification and the offer will appear in the "Accepted Offers" table. See the figure below for an example of how the screen will look after a worker accepts your first job offer.
If you do not want to send any more offers in this round, you can click the "done" button in the bottom of the Trading Box.
The market phase ends when all workers have accepted an offer, all employers have either filled their jobs or clicked the "done" button, or else when the time limit of {{ market_time }} seconds is reached. The time left in the current round will be displayed in a yellow box at the top of the page. When the market phase is over, no offers can be submitted or accepted.
Following the market phase, all workers who have accepted a job offer enter the production phase. In this phase, workers choose their effort. The effort requested by employers is not binding. Hence, workers can choose {{ name_high_effort }} or {{ name_low_effort }} effort irrespective of the effort indicated in the job offer.
The page which workers see looks like the one shown above. At the top of the page, workers see the wage they accepted and the effort requested by the employer. Below, they see the cost of each effort choice.
Before the start of the next round, you can send a private offer to each worker you employed in the previous round.
Private offers can only be seen by the worker you've sent them to. As such, they allow you to establish a longer-term relationship with workers.
Private offers work just as public offers: You need to specify a wage and an effort, and then click on "Send Offer". Click "next" once you are done sending private offers. Note that you cannot cancel the offer later on.
In each round, the workers' profits depend on whether they are employed, their wage, and their effort level.
Example: if a workers receives a wage of {{ worker_example_wage }} {{ currency_plural }} and chooses {{ name_high_effort }} effort, their profits in this round are {{ worker_example_wage }} – {{ high_effort_points_tokens }} = {{ worker_example_profit_high_effort }} {{ currency_plural }}. If, instead, the worker chooses {{ name_low_effort }} effort, the profits are {{ worker_example_wage }} – {{ low_effort_points_tokens }} = {{ worker_example_profit_low_effort }} {{ currency_plural }}.
As you can see, a worker's profits are larger the higher their wage. Their profit is also higher if they choose {{ name_low_effort }} effort. Note that a worker can make a loss if the effort costs are higher than their wage.
Your profits in each round are determined by the wages you pay to your workers, the effort they choose, and the number of workers you employ.
If you do not employ any workers in a round, you earn 0 {{ currency_plural }} in that round.
If you employ one or two workers, your profit is the difference between your total revenue and the wages you pay:
Profit = Total revenue - total wage payments.
The total revenue depends on the number of workers you employ and the effort the workers provide.
The table below summarizes the total revenue in each case.
Case | Total revenue |
---|---|
Employ one worker. The worker chooses {{ name_high_effort }} effort. |
{{ gain_high_effort_1_worker }} |
Employ one worker. The worker chooses {{ name_low_effort }} effort. |
{{ gain_low_effort_1_worker }} |
Employ two workers. Both workers choose {{ name_high_effort }} effort. |
{{ gain_high_effort_2_workers }} + {{ gain_high_effort_2_workers }} = {{ total_gain_high_effort_2_workers }} |
Employ two workers. One worker chooses {{ name_high_effort }} effort. The other worker chooses {{ name_low_effort }} effort. |
{{ gain_high_effort_2_workers }} + {{ gain_low_effort_2_workers }} = {{ total_gain_mix_effort_2_workers }} |
Employ two workers. Both workers choose {{ name_low_effort }} effort. |
{{ gain_low_effort_2_workers }} + {{ gain_low_effort_2_workers }} = {{ total_gain_low_effort_2_workers }} |
Example: Suppose you employ two workers. You pay one worker a wage of 60 {{ currency_plural }} and the other worker a wage of 40 {{ currency_plural }}.
Note you make a loss if the total wage payments are larger than total revenue.
The experiment will not start until all participants are familiar with the instructions. To ensure this is the case, we ask you to answer three questions on the following pages.
Click on the next button below when you are ready to answer these questions.