Task
You are supervising a team of two employees.
Team Managers and Employees will be completing the following task.
Each employee has limited resources that they are responsible for allocating each period to either their own individual project or a project being conducted jointly with the other employee on your team. Each division in the company, and the company as a whole, are more successful when its teams allocate greater resources to joint projects. As a result, each team manager and each division director achieve higher payoffs when employees allocate greater resources to joint projects.
Employees’ task each period is to decide whether to allocate a high level of resources to their team’s joint project. They will earn revenue based on their investments in the joint project.
If an employee chooses a high level of resources, they will incur a cost of 15 points. If they choose a low level of resources, they will incur no cost (0 points).
The joint project’s revenue increases with the level of resources allocated to it by each employee according to the following:
| • | If both employees choose low resources, joint project revenue = 15 points |
| • | If one employee chooses low resources and one employee chooses high resources, joint project revenue = 45 points |
| • | If both employees choose high resources, joint project revenue = 75 points |
Joint project revenue will be split equally between the two employees and the team manager, no matter what level of resources either of them allocates to the project. Thus, an employee’s payoff in points for a period will be equal to 1/3rd of the joint project’s revenue minus the cost of the resources they allocate.
Your payoff in points for a period will be a salary of 25 points, plus 1/3rd of the joint project’s revenue.
Points will be converted to dollars at the end of the study at a rate of 100 points = $1.00.
The division director, who made their decision yesterday, had the option to include a project audit function across all teams in their division.
Specifically, the division director could choose to have a company auditor check project results. If the division director chose this option, there will be an 80% likelihood that the auditor checks project results in any particular period for any particular team in the division. Additionally, if an audit is conducted, any employee who has allocated high resources to the joint project in that period will be awarded a bonus of 15 points.
Employees A and B will learn before they begin their task whether the division director chose to include this option for all teams in the division.
They will then complete their task for a number of periods, receiving results at the end of each period. The results of each period have no effect on subsequent periods.
{{ elif player.condition == 2 }}You have the option to include a project audit function for your team only. Specifically, you can choose to have a company auditor check your team’s project results. If you choose this option, there will be an 80% likelihood that the auditor checks project results for your team in any particular period. Additionally, if an audit is conducted, any employee who has allocated high resources to the joint project in that period will be awarded a bonus of 15 points.
Employee A and Employee B will learn before they begin their task whether you chose to include this option.
They will then complete their task for a number of periods, receiving results at the end of each period. The results of each period have no effect on subsequent periods.
{{ elif player.condition == 3 }}Employees have the option to include a project audit function for their team only. Specifically, they can choose to have a company auditor check project results. If they choose this option, there will be an 80% likelihood that the auditor checks project results in any particular period. Additionally, if an audit is conducted, any employee who has allocated high resources to the joint project in that period will be awarded a bonus of 15 points.
Before beginning their task, each Employee will indicate whether they wish to include the audit function. Employees will be formed into teams based on their response, and so each team will consist of two employees who both elected to include or not include the audit function. You will be matched with one of these teams. Employees are also aware of these matching rules and so will know prior to beginning their task that the inclusion of the project audit function matches their preference.
They will then complete their task for a number of periods, receiving results at the end of each period. The results of each period have no effect on subsequent periods.
{{ endif }} {{ else }}Task
You have limited resources that you are responsible for allocating each period to either your own individual project or a project being conducted jointly with Employee B. Each division in the company, and the company as a whole, are more successful when its teams allocate greater resources to joint projects. As a result, each team manager and each division director achieve higher payoffs when employees allocate greater resources to joint projects.
Your task each period is to decide whether to allocate a high level of resources to your team’s joint project. You will earn revenue based on your investments in the joint project.
If you choose a high level of resources, you will incur a cost of 15 points. If you choose a low level of resources, you will incur no cost (0 points). The joint project’s revenue increases with the level of resources allocated to it by you and Employee B according to the following:
| • | If both employees choose low resources, joint project revenue = 15 points |
| • | If one employee chooses low resources and one employee chooses high resources, joint project revenue = 45 points |
| • | If both employees choose high resources, joint project revenue = 75 points |
Joint project revenue will be split equally between the two employees and the team manager, no matter what level of resources either of them allocates to the project. Thus, an employee’s payoff in points for a period will be equal to 1/3rd of the joint project’s revenue minus the cost of the resources they allocate.
The team manager’s payoff in points for a period will include 1/3rd of the joint project’s revenue.
Points will be converted to dollars at the end of the study at a rate of 100 points = $1.00.
The division director, who made their decision yesterday, had the option to include a project audit function across all teams in their division.
Specifically, the division director could choose to have a company auditor check project results. If the division director chose this option, there will be an 80% likelihood that the auditor checks project results in any particular period for any particular team in the division. Additionally, if an audit is conducted, any employee who has allocated high resources to the joint project in that period will be awarded a bonus of 15 points.
You and Employee B will learn before you begin your task whether the division director chose to include this option for all teams in the division.
You will then complete your task for a number of periods, receiving results at the end of each period. The results of each period have no effect on subsequent periods.
{{ elif player.condition == 2 }}Your team manager has the option to include a project audit function for your team only. Specifically, your team manager can choose to have a company auditor check your team’s project results. If your team manager chooses this option, there will be an 80% likelihood that the auditor checks project results for your team in any particular period. Additionally, if an audit is conducted, any employee who has allocated high resources to the joint project in that period will be awarded a bonus of 15 points.
You and Employee B will learn before you begin your task whether your team manager chose to include this option.
You will then complete your task for a number of periods, receiving results at the end of each period. The results of each period have no effect on subsequent periods.
{{ elif player.condition == 3 }}You have the option to include a project audit function for your team only. Specifically, you can choose to have a company auditor check project results. If you choose this option, there will be an 80% likelihood that the auditor checks project results in any particular period. Additionally, if an audit is conducted, any employee who has allocated high resources to the joint project in that period will be awarded a bonus of 15 points.
Before beginning your task, you will indicate whether you wish to include the audit function. You will be matched with another employee who indicated the same preference as you for including the audit function. The two of you will also be matched with a team manager. The team manager is aware of these matching rules and so will know that the inclusion of the project audit function matches the preference indicated by you and Employee B.
You will then complete your task for a number of periods, receiving results at the end of each period. The results of each period have no effect on subsequent periods.
{{ endif }} {{ endif }}