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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 }}$5.00{{ else }}$3.00{{ endif }}. You will also receive additional compensation based on your total points earned (50 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. Points (output) generated by any points you use to increase your own total output.
2. Points (output) generated by any points your teammates use to increase your total output. As previously mentioned, the sum of (1) and (2) is equal to your total output for the period.
3. Any points allocated to you by your Manager from your team’s discretionary bonus pool of 400 points.

Example

For illustrative purposes, consider the example presented to you earlier.

Suppose on a given team that Employee 1 chooses to use 35 A points and 35 B points to increase their own total output, and chooses to use their remaining points (15 of each type) to increase the output of Employees 2, 3, and 4 (i.e., 5 points of each type used to increase the output of each of these other Employees).

Suppose also that Employees 2, 3, and/or 4 use a total of 12 points to increase the total output of Employee 1, and that these points generate output of 10 points. Employee 1’s total output would include these 10 points.

Results would be determined as follows:

Effect on Employee 1’s total output of Employee 1’s use of points:

Resource type: Points used by Employee 1 to increase their own total output: Output generated:
A 35 (35 × 2 = ) 70 points
B 35 (35 × 1 = ) 35 points
  Sub-total (70 + 35 = ) 105 points
     
Output generated from the 12 points used by teammates to increase Employee 1's total output 10 points
     
Employee 1's total output   (105 + 10 =) 115 points

Effect of points used by Employee 1 to increase the total output of Employees 2, 3, and 4:

Resource (point) type: Points used to increase total output: Output generated:
A 5 Between 7.5 and 12.5 points
B 5 Between 2.5 and 7.5 points
Total   Between 10 and 20 points

Recall that the output generated per point used to increase the output of another Employee is randomly determined separately for any Employee who chooses to use points in this way and ranges between 1.5 and 2.5 for A points and 0.5 and 1.5 for B points.


Suppose that the random draw results in multipliers of 1.5 for A points and 0.8 for B points. In that case, the points used by Employee 1 would generate the following output for teammates:


  Points used and output generated for:
  Employee 2   Employee 3   Employee 4
Resource type: Points: Output generated:   Points: Output generated:   Points: Output generated:
A 5 7.5 points   5 7.5 points   5 7.5 points
B 5 4.0 points   5 4.0 points   5 4.0 points
Total   11.5 points     11.5 points     11.5 points


The team’s Manager would see the following information for Employee 1 (note that the Manager would see this information for the other Employees on the team as well):

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Employee Employee total outputNumber of points used to increase the total output of another Employee Number of points used by teammates to increase the total output of this Employee
1 115 30 12

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

Recall that Managers know each Employee can choose to use points to increase the total output of any other Employee on the team, but will not learn whether any Employee used points in this manner or whether any Employee’s output was increased by points used in this manner.

{{ endif }}

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


Employee 1's compensation would include:

{{ if player.condition == 3 or player.condition == 4 }} {{ endif }}
   {{ if player.condition == 1 or player.condition == 2 }} {{ endif }}Points earned from total output: {{ if player.condition == 1 or player.condition == 2 }}{{ endif }} 115
   Points allocated by Manager from the bonus pool: 100
   Total points {{ if player.condition == 1 or player.condition == 2 }}115{{ else }}215{{ endif }}
      
   Compensation earned: ({{ if player.condition == 1 or player.condition == 2 }}115 {{ else }}215 {{ endif }}points / 50 points per $1.00 = ) {{ if player.condition == 1 or player.condition == 2 }}$2.30{{ else }}$4.30{{ endif }} plus participation fee


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