The Supervisor divides the bonus pool between the two BU managers.
The Supervisor always observes the total investment and the bonus pool.
In addition, the Supervisor can offer a price for information about the individual investments of both BU managers.
To get access to this information, the Supervisor indicates his or her willingness to pay from 0 Lira to 5 Lira with increments of 0.1 Lira.
The chance of getting the information increases linearly with the amount the Supervisor is willing to pay.
Specifically, the computer compares the Supervisor’s willingness to pay to a random number between 0 Lira and 5 Lira.
The computer draws a new random number every round, and every number between 0 Lira and 5 Lira has an equal probability to be chosen.
If the Supervisor’s willingness to pay < the random number, he or she does not receive the information and his or her reward is: 15 Lira.
If the Supervisor’s willingness to pay ≥ the random number, he or she receives the information and his or her reward is: 15 Lira – random number.
If the Supervisor’s willingness to pay is 0 Lira, he or she does not receive the information and his or her reward is: 15 Lira.
If the Supervisor’s willingness to pay is 5 Lira, he or she receives the information and his or her reward is: 15 Lira – 5 Lira = 10 Lira.
Note that the Supervisor's reward does not depend on the individual investments nor on how he or she allocates the bonus pool.
{% else %}
The Supervisor's task is to divide the bonus pool between the two BU managers.
The Supervisor always observes the total investment and the bonus pool.
In addition, the Supervisor can offer a price for information about the individual investments of both BU managers.
If the Supervisor does not want to offer a price for this information, he/she immediately allocates the bonus pool between the two BU managers. The Supervisor’s reward is then equal to 15 Lira.
If the Supervisor does want to offer a price for this information, he/she indicates his or her willingness to pay from 0.1 Lira to 5 Lira with increments of 0.1 Lira.
The chance of getting the information increases linearly with the amount the Supervisor is willing to pay.
Specifically, the computer compares the Supervisor’s willingness to pay to a random number between 0 Lira and 5 Lira.
The computer draws a new random number every round, and every number between 0 Lira and 5 Lira has an equal probability to be chosen.
If the Supervisor’s willingness to pay < the random number, he or she does not receive the information and his or her reward is: 15 Lira.
If the Supervisor’s willingness to pay ≥ the random number, he or she receives the information and his or her reward is: 15 Lira – random number.
If the Supervisor’s willingness to pay is 5 Lira, he or she receives the information and his or her reward is: 15 Lira – 5 Lira = 10 Lira.
Note that the Supervisor's reward does not depend on the BU managers' individual investments nor on how he or she allocates the bonus pool.
{% endif %}
{% formfield player.accept_3 label="I am finished and would like to continue." %}
{% next_button %}
{% endblock %}