{{ block title }}Part 2 Instructions{{ endblock }} {{ block content }}

In this part, you will be randomly assigned to a group of three, including two workers and one manager. The experiment will last multiple periods, and workers and managers will be regrouped each period.

  1. Each period, the manager will decide a wage offer for the two workers in the same group, and each worker will receive one half of the wage offer. No worker will know the wage offer made to workers in any other group.

  2. After a worker received the manager’s wage offer, the worker will choose the level of work to perform. Each work level has a cost to the worker. Relationships between possible work levels and their costs will be described shortly.

  3. After both workers choose their work level, these choices will not be revealed to the manager.

  4. Then a new period will begin, repeating the procedures described in 1 through 3 above.

  5. After all periods are completed, one period will be randomly selected as the payment period. Managers and workers will be paid based on choices made in that period.

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