{{ block title }} Phase 3: Payoffs {{ endblock }} {{ block content }} {{ if session.choice_condition == True and session.capped_condition == False }}
In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).
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 =
Production level is a number between 0.1 and 1.0 (inclusive).
Production cost corresponds to each production level as follows:
| Production Level | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 | 0.7 | 0.8 | 0.9 | 1.0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Production Costs (Lira) | 0 | 1 | 2 | 4 | 6 | 8 | 10 | 12 | 15 | 18 |
In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).
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 Level | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 | 0.7 | 0.8 | 0.9 | 1.0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Production Costs (Lira) | 0 | 1 | 2 | 4 | 6 | 8 | 10 | 12 | 15 | 18 |
In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).
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 Level | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 | 0.7 | 0.8 | 0.9 | 1.0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Production Costs (Lira) | 0 | 1 | 2 | 4 | 6 | 8 | 10 | 12 | 15 | 18 |
In Phase 3, both the firm and employee learn their payoffs for the round (see screenshot below).
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 Level | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 | 0.7 | 0.8 | 0.9 | 1.0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Production Costs (Lira) | 0 | 1 | 2 | 4 | 6 | 8 | 10 | 12 | 15 | 18 |
You will now be shown a few example scenarios.
{{ next_button }} {{ endblock }}