{{ block title }} Phase 3: Payoffs {{ endblock }} {{ block content }} {{ if session.choice_condition == True and session.capped_condition == False }}

Study Timeline Phases

In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).

Study Steps

Note: during the six main rounds, “X” will be the payoff amount in Lira.

As stated previously, the firm’s payoff is calculated as follows:

Firm payoff = (120 × production level) - wage

The employee’s payoff is calculated as follows:

Employee payoff = wage - production cost

Remember, wage, production level, and production cost are defined as follows:

{{ if session.fixed_contract_condition == True }}

Wage is an integer between 20 Lira and 120 Lira (inclusive). This wage is fixed, meaning, the employee will receive the wage regardless of the production level.

{{ else }}

Wage is an integer between 20 Lira and 120 Lira (inclusive). This wage depends on the production level, meaning, the employee will receive the wage according to the following:

Wage =

{{ endif }}

Production level is a number between 0.1 and 1.0 (inclusive).

Production cost corresponds to each production level as follows:

Production Level0.10.20.30.40.50.60.70.80.91.0
Production Costs (Lira)01246810121518

{{ elif session.choice_condition == True and session.capped_condition == True }}

Study Timeline Phases

In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).

Study Steps

Note: during the six main rounds, “X” will be the payoff amount in Lira.

As stated previously, the firm’s payoff is calculated as follows:

Firm payoff = (120 × production level) - wage

The employee’s payoff is calculated as follows:

Employee payoff = wage - production cost

Remember, wage, production level, and production cost are defined as follows:

Wage is an integer between 20 Lira and 120 Lira (inclusive). This wage is fixed, meaning, the employee will receive the wage regardless of the production level.

Production level is a number between 0.1 and 1.0 (inclusive).

Production cost corresponds to each production level as follows:

Production Level0.10.20.30.40.50.60.70.80.91.0
Production Costs (Lira)01246810121518

{{ elif session.choice_condition == False and session.session_employee_set == True}}

Study Timeline Phases

In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).

Learn Payoffs

Note: during the six main rounds, “X” will be the payoff amount in Lira.

As previously stated, the firm’s payoff is calculated as follows:

Firm payoff = (120 × production level) - wage

The employee’s payoff is calculated as follows:

Employee payoff = wage - production cost

Remember, wage, production level, and production cost are defined as follows:

Wage is an integer between 20 Lira and 120 Lira (inclusive). This wage is fixed, meaning, the employee will receive the wage regardless of the production level.

Production level is a number between 0.1 and 1.0 (inclusive).

Production cost corresponds to each production level as follows:

Production Level0.10.20.30.40.50.60.70.80.91.0
Production Costs (Lira)01246810121518

{{ else }}

Study Timeline Phases

In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).

Learn Payoffs

Note: during the six main rounds, “X” will be the payoff amount in Lira.

As previously stated, the firm’s payoff is calculated as follows:

Firm payoff = (120 × production level) - wage

The employee’s payoff is calculated as follows:

Employee payoff = wage - production cost

Remember, wage, production level, and production cost are defined as follows:

Wage is an integer between 20 Lira and 120 Lira (inclusive). This wage is fixed, meaning, the employee will receive the wage regardless of the production level.

Production level is a number between 0.1 and 1.0 (inclusive).

Production cost corresponds to each productio nlevel as follows:

Production Level0.10.20.30.40.50.60.70.80.91.0
Production Costs (Lira)01246810121518

{{ endif }}

You will now be shown a few example scenarios.

{{ next_button }} {{ endblock }}