{{ block title }} Task 1 - Step 3: Report Decision (1/2) {{ endblock }} {{ block content }}

In each Auditor-Firm pair, the two participants observe a certain number of plates, randomly drawn from the Firm’s {{ C.TPLATES }} plates. The number and composition of observed plates varies across rounds. With this information, the Auditor must decide whether to report the Firm as Type A or as Type B.

The number of tokens that the Firm earns in this round depend on the Auditor’s report decision:

On the other hand, the number of tokens that the Nonprofit earns in this round depends on both the Auditor’s report decision and the Firm’s true type. In particular:

The table below summarizes how the Firm and the Nonprofit’s earnings (in tokens) depend on the Firm’s true type and the Auditor’s report decision. For your convenience, this table is also included in your printed reference sheets.

Table 1: Firm and Nonprofit earnings (in tokens)
Reported Type of the Firm True Type of the Firm Firm Nonprofit
A A {{ receives }} {{if session.Treatment != 'R'}} - {{C.audit_fee }} {{ endif }} + {{ C.reward_firm }} = {{FirmReceivesA}} {{ C.endowment_npo }} + {{ C.reward_npo }}= {{NPOReceivesAA}}
A B {{ C.endowment_npo }} - {{ C.reward_npo }}= {{NPOReceivesAB}}
B A {{ receives }} {{if session.Treatment != 'R'}} - {{C.audit_fee }} {{ endif }} - {{ C.reward_firm }} = {{FirmReceivesB}}
B B {{ C.endowment_npo }} + {{ C.reward_npo }}= {{NPOReceivesAA}}

Note: Earnings in the table include the tokens received at the beginning of the round.

{{if session.Type != 'Heroku'}}
{{ endif }} {{ endblock }}