Before the tasks are actually solved, all group members have to make a decision whether each member
solves [Y/4] tasks or that only the Participants B solve [Y/2] tasks. [Treatment: Each participant will
decide whether every group member solves [Y/4] tasks, or Participants A solve [Y/8] tasks each and
Participants B solve [3Y/8] tasks each.]
This decision has to be made for three possible tax rates: . One of these tax
rates will
be drawn randomly. Then, the decision of one member for this tax rate will be drawn randomly and
implemented for the group.
Example: Suppose the random mechanism draws tax rate 50%, and you are drawn to be the member whose
decision is implemented. Then the task will be solved either by all members or only by participants B
according to your decision for tax rate 50%
So, how much you earn depends on
whether you are a Participant A or B and
whether all members solve tasks or only Participant B and
which tax rate applies for your group.
An overview of the income before and after taxes for each possible decision and tax rate is given in the
table below.
{% include 'reallocation/tax/incomes_block.html' %}
{% include 'reallocation/tax/earnings_table.html' %}