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To ensure that you understand the earlier instructions, please answer a few questions. You will not be able to proceed to the next part unless you answer these questions correctly.
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In this stage of the study, you will read a performance contract and then make a decision about the level of effort you wish to expend under that contract. The effort level you choose will affect the probability of achieving a high or low performance outcome under this contract.
At the end of the study today, your performance outcome will be determined by randomly drawing of one chip from a bag that always contains 20 chips. Initially, the bag contains:
Your chosen effort level will determine how many additional red chips are placed into the bag. Any additional red chips placed into the bag will replace existing blue chips. Because the total number of chips in the bag will always be 20 chips, the higher effort level you choose, the higher the likelihood you will achieve a high performance outcome. Here is why:
Higher Effort
= More red chips added to the bag replacing existing blue chips
= Higher likelihood of drawing a red chip
= Higher likelihood of achieving a high performance outcome.
But note, the higher the effort level you choose, the greater personal cost to you. Please read the performance contract carefully before making your decision.
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