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Payoffs and Compensation


Your total compensation for the study includes your participation fee of {{ if player.condition == 1 or player.condition == 2 }}$6.00{{ else }}$3.00{{ endif }}. You will also receive additional compensation based on your total points earned (25 points = $1.00) from tasks completed.

This compensation will include the elements described to you previously:

{{ if player.condition == 3 or player.condition == 4 }} {{ endif }}
1. 1 point per work unit accurately completed by you for your own benefit.
2. 1 point per work unit accurately completed for your benefit by another employee. As previously mentioned, the sum of (1) and (2) is equal to your total output for the period. (In addition, if you choose to spend time completing work that increases another employee’s total output, they will receive 1 point per work unit accurately completed during this time).
3. Any points allocated to you by your manager from your group’s discretionary bonus pool of 300 points.

Examples

For illustrative purposes, consider the examples presented to you earlier:

1. Suppose in the work period, a participant:

- Completed 75 work units in part 1.
- Spent 0.5 minutes (30 seconds) in part 2 completing work to increase their own total output and completed 10 work units in this time.
- Spent 1.5 minutes (90 seconds) in part 2 completing work to increase another employee’s total output and completed 30 work units in this time.

Suppose also that another employee spent time working to increase the participant’s total output in part 2 of the period and completed 20 work units in that time. The participant’s total output for the period would be 105, as illustrated in the feedback below that the participant would receive at the end of the period:

Part 1 - Units completed
(1)		 Part 2 – Units completed toward your own total output
(2)		 Part 2 – Units completed toward another employee’s total output
(3)		 Units completed toward your output by other employee(s)
(4)		 Your total output
(1) + (2) + (4)
75 10
30

(This increased the other employee's output by 30 units)		 20 105

The group’s manager would see the following information for the participant (note that the manager would see the same information for the other employees in the group as well):

{{ if player.condition == 2 or player.condition == 4 }} {{ endif }} {{ if player.condition == 2 or player.condition == 4 }} {{ endif }}
Employee Employee total outputSpent time working to increase the total output of another employee Had another employee (or other employees) spend time working to increase their total output on their behalf
A 105Yes Yes

{{ if player.condition == 1 or player.condition == 3 }}

Recall that managers know each employee can spend time completing work that increases the total output of another employee. However, managers will not learn which employees spent time working to increase another employee’s total output, or which employees had others spend time working to increase their total output on their behalf.

{{ endif }}

In addition, suppose the group’s manager rates the participant’s performance at 75 (1-100){{ if player.condition == 3 or player.condition == 4 }} and chooses to allocate 75 points from the company’s discretionary bonus pool to the participant{{ endif }}.


The participant’s total compensation would be:

{{ if player.condition == 3 or player.condition == 4 }} {{ endif }}
   {{ if player.condition == 1 or player.condition == 2 }} {{ endif }}Points earned from total output (105 × 1): {{ if player.condition == 1 or player.condition == 2 }}{{ endif }} 105
   Points allocated to participant by manager from the bonus pool: 75
   Total points {{ if player.condition == 1 or player.condition == 2 }}105{{ else }}180{{ endif }}
      
   Compensation earned: ({{ if player.condition == 1 or player.condition == 2 }}105 {{ else }}180 {{ endif }}points / 25 points per $1.00 = ) {{ if player.condition == 1 or player.condition == 2 }}$4.20{{ else }}$7.20{{ endif }} plus participation fee

2. Suppose in the work period, a participant:

- Completed 80 work units in part 1.
- Spent 2 minutes (120 seconds) in part 2 completing work to increase their own total output and completed 50 work units in this time.

Suppose also that no other employee spent time working to increase the participant’s total output in part 2 of the period. The participant’s total output for the period would be 130, as illustrated in the feedback below that the participant would receive at the end of the period:

Part 1 - Units completed
(1)		 Part 2 – Units completed toward your own total output
(2)		 Part 2 – Units completed toward another employee’s total output
(3)		 Units completed toward your output by other employee(s)
(4)		 Your total output
(1) + (2) + (4)

80
 
50
 
0
 
0
 
130
 

The group’s manager would see the following information for the participant (note that the manager would see the same information for the other employees in the group as well):

{{ if player.condition == 2 or player.condition == 4 }} {{ endif }} {{ if player.condition == 2 or player.condition == 4 }} {{ endif }}
Employee Employee total outputSpent time working to increase the total output of another employee Had another employee (or other employees) spend time working to increase their total output on their behalf
A 130No No

{{ if player.condition == 1 or player.condition == 3 }}

Recall that managers know each employee can spend time completing work that increases the total output of another employee. However, managers will not learn which employees spent time working to increase another employee’s total output, or which employees had others spend time working to increase their total output on their behalf.

{{ endif }}

In addition, suppose the group’s manager rates the participant’s performance at 90 (1-100){{ if player.condition == 3 or player.condition == 4 }} and chooses to allocate 75 points from the company’s discretionary bonus pool to the participant{{ endif }}.


The participant’s total compensation would be:

{{ if player.condition == 3 or player.condition == 4 }} {{ endif }}
   {{ if player.condition == 1 or player.condition == 2 }} {{ endif }}Points earned from total output (130 × 1): {{ if player.condition == 1 or player.condition == 2 }}{{ endif }} 130
   Points allocated to participant by manager from the bonus pool: 75
   Total points {{ if player.condition == 1 or player.condition == 2 }}130{{ else }}205{{ endif }}
      
   Compensation earned: ({{ if player.condition == 1 or player.condition == 2 }}130 {{ else }}205 {{ endif }}points / 25 points per $1.00 = ) {{ if player.condition == 1 or player.condition == 2 }}$5.20{{ else }}$8.20{{ endif }} plus participation fee

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