{{ extends "global/Page.html" }} {% block title %} Compensation {% endblock %} {% block content %}

Your compensation will be based on the outcomes of all rounds of the task you will complete.

Each round, ABC Company will pay you:

1) A base salary of {% if player.condition == 1 %}1,250{% elif player.condition == 2 %}3,250{% elif player.condition == 3 %}2,250{% endif %} points, and

{% if player.condition == 1 %} 2a) no bonus if you achieve a low outcome,
2b) a bonus of 1,000 points if you achieve a medium outcome, or
2c) a bonus of 2,000 points if you achieve a high outcome.

Thus, if you achieve a high outcome, you will be compensated a total of 3,250 points (1,250 points base salary plus a bonus of 2,000 points). If you achieve a medium outcome you will be compensated a total of 2,250 points (1,250 points base salary plus a bonus of 1,000 points). If you achieve a low outcome, you will be compensated a total of 1,250 points (base salary only). {% elif player.condition == 2 %} 2a) no penalty if you achieve a high outcome,
2b) a penalty of 1,000 points if you achieve a medium outcome, or
2c) a penalty of 2,000 points if you achieve a low outcome.

Thus, if you achieve a high outcome, you will be compensated a total of 3,250 points (base salary only). If you achieve a medium outcome you will be compensated a total of 2,250 points (3,250 points base salary less a penalty of 1,000 points). If you achieve a low outcome, you will be compensated a total of 1,250 points (3,250 points base salary less a penalty of 2,000 points). {% elif player.condition == 3 %} 2a) no bonus or penalty if you achieve a medium outcome,
2b) a bonus of 1,000 points if you achieve a high outcome, or
2c) a penalty of 1,000 points if you achieve a low outcome.

Thus, if you achieve a high outcome, you will be compensated a total of 3,250 points (2,250 points base salary plus a bonus of 1,000 points). If you achieve a medium outcome, you will be compensated a total of 2,250 points (base salary only). If you achieve a low outcome, you will be compensated a total of 1,250 points (2,250 points base salary less a penalty of 1,000 points). {% endif %}


You will be informed whether you achieved a high, medium, or low outcome at the end of each round.

In each round, your chance of achieving a high, medium, or low outcome will depend on your chosen level of effort. In each round, you will choose your effort level from a schedule of 13 effort levels. Each level of effort corresponds to different probabilities that the level of effort will yield a high, medium, and low outcome. The following table shows the effort levels, the cost to you of each effort level, and the probability of achieving a high, medium, or low outcome associated with each effort level.


{% if player.condition == 1 %} {% elif player.condition == 2 %} {% elif player.condition == 3 %} {% endif %}


Notice that each level of effort (column 1) is associated with a monetary cost to you (column 2), and that the higher the level of effort, the higher your monetary cost. However, a higher level of effort also increases your chance of achieving a higher outcome level (columns 3 to 5) {% if player.condition == 1 %}and thereby receiving a bonus for the round{% elif player.condition == 2 %}and thereby avoiding a penalty for the round{% elif player.condition == 3 %}and thereby receiving a bonus and avoiding a penalty for the round{% endif %}.

Your actual outcome in each round will be determined in the following manner. After you have selected your effort level for that round, the computer program will randomly select a number between 1 and 100. The number will be compared to the probability of achieving a high, medium, and low outcome associated with your chosen level of effort. For a high outcome, if the random number is smaller than or equal to the associated probability, you will achieve the high outcome.

For example, if you choose an effort level of 7, the associated probability of achieving a high outcome is 35%. Thus, you will achieve a high outcome if the computer program selects any number between 1 and 35. You will achieve a medium outcome if the computer program selects a number between and including 36 and 65 (representing the 30% probability in Column 4). You will achieve a low outcome if the computer program selects a number between and including 66 and 100 (representing the 35% probability in column 5).

Please proceed to the next page to answer a few questions regarding your task and your compensation.



{% next_button %} {% endblock %}