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Stage II
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Task: there are four employees in each firm (including yourself), each independently running a lemonade stand. Each of the four
employees is trying to determine the most profitable set of variables to operate their part of the firm with.
You will be presented with a screen that allows you to search across a variety of dimensions to determine the profitability of their own
personal lemonade stand. These dimensions are as follows:
Location: A categorical variable that takes one of three values: North, Central, and South
Sugar Content: A numerical variable that determines the sugar content and sweetness of your lemonade. It can take values between 0 and 10
in increments of 0.1.
Lemon Content: A numerical variable that determines how sour your lemonade is. It can take values between 0 and 10 in increments of 0.1.
For each location, there is one value for sugar and one value of lemon for which the combination of those two values yields the highest possible payoff
for that location. The values of sugar and lemon that yield that maximum payoff for each location may be different, and the maximum payoff earned at each
location may be different as well. That is, it is your job to find the combination of location, sugar content, and lemon content that earns you the highest
possible payoff by searching over these various dimensions. You will always earn the maximum value achieved during any point of the search process
regardless of the final value of the variables you end up submitting.
Feedback as an employee: During the round, you may click the "Search!" button on the page in order to find out what the payoff for your currently
selected variables will be. This will be the amount you earn once you click the "next" button on the page to finish searching. Additionally, there is a field labeled
"Search Value" that returns the value of the current combination of variables selected and a field labeled "Current Payoff" that returns the maximum of all values
achieved so far. There is also a set of fields that displays what combination of variables achieved this maximum value in the "Current Payoff" field.
Note that you must press the “Search!” button in order to receive a payoff for some combination of variables you have selected Note that you must press the “Search!” button in order to receive a payoff for some combination of variables you have selected
On the next page, you can practice with the interface that you will be using for the first part of each set of Stage II.
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