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<h1> Task 1 - Examples </h1>
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        <h2> Example 2 </h2>

<p>Suppose that at the beginning of round 4, the two Firms from a 4-person group observe the following information about the Report Decisions that the two Auditors in the group have made in rounds 1 – 3:</p>
<ul>
<li><strong>Auditor X: </strong> Reported Type A in 2 rounds and reported Type B in 1 round. </li>
<li><strong>Auditor Y:</strong> Reported Type A in 1 round and reported Type B in 2 rounds. </li>
</ul>
<p>After observing this information, the <strong>1st Firm </strong> {{ if session.Treatment == 'HP'}} selects {{ else }} is matched with {{ endif }} Auditor X. Because of this, this Auditor&rsquo;s cost for conducting the audit is equal to {{ audit_cost1 }} tokens.</p>


<p>  Then, both Auditor X and the 1st Firm observe the following sample of <b> 4 plates</b>,
    randomly drawn from the Firm’s 100 plates, where there is <b>  1 damaged plate</b>  and <b> 3 undamaged plates</b>:</p>

<center>
{{for i in plates}}
    {{if i == 1}} <img src="{% static image_damaged %}"/>  {{else}}  <img src="{% static image_undamaged %}"/> {{endif}}
{{endfor}}
</center>


        <p></p>
        <p> After seeing this information, the Auditor decides to <b> report the Firm as Type A</b>. </p>

        <p> At the end of the study, all rounds are equally likely to be randomly selected for payments.
    Suppose that Round 4 is the round randomly selected and that that it is revealed that the Firm’s true type was Type B. Then: </p>

<ul>
    <li> The Auditor’s report was incorrect. Therefore, there is a 5% chance that the Auditor incurs a penalty. </li>
    <li> In this case, it is randomly determined that the Auditor incurs a penalty of 25 tokens. The payoffs (excluding possible additional earnings from the belief questions) are:
    <ul>
        {{if session.Treatment == 'R'}}
        <li> Firm: Initial tokens + report-TypeA =  {{C.endowment_firm}} + {{ C.reward_firm }}= {{firmtotal}} tokens. </li>
        {{ else }}
            <li> Firm: Initial tokens – audit fee + report-TypeA =  {{receives }} - {{ C.audit_fee }} + {{ C.reward_firm }}= {{firmtotal}} tokens. </li>
        {{ endif }}
                <li> Auditor: Initial tokens + audit fee – audit cost – penalty =  {{C.endowment_auditor}} + {{ C.audit_fee }} - {{ audit_cost1 }} - {{ C.audit_penalty }} = {{  auditortotal }} tokens.  </li>
        <li> Nonprofit: Initial tokens + report-incorrect = {{C.endowment_npo}} - {{ C.reward_npo }} = {{ npototal }} tokens.  </li>
    </ul>
    </li>
</ul>




    <button class="otree-btn-next btn btn-primary" style="float: right;">Next</button>

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