{% extends "global/Page.html" %} {% load staticfiles otree %} {% block styles %} {% endblock %} {% block content %}

Instructions Task 2 - The Partnering Decision


Before you see your own evaluation you will get to see the feedback of the person you are paired with. If they chose to go for public evaluation then you will be shown their correct feedback with 80% probability, wrong feedback for them with 10% probability and no signal or feedback with 10% probability. If they chose to go with private feedback then you will see no signal as well as below.

The figure below shows you the exact three possible evaluations that you will see for your paired participant


The figure below shows you what kind of feedback you will see depending on the evaluation system chosen by your paired participant.


Once you get to see their feedback, you have to make the decision on whether you would like to partner with them. On the basis of your decision to partner with your paired participant will affect your payoffs in the following manner in this part of the experiment. In particular:

  • If you decide to partner with them and they are really in the top half of the distribution, then you will be paid £4.
  • If you decide to partner with them and they are really in the bottom half of the distribution, then you will be paid 0. .
  • If you decide to not partner with them and instead go solo, then you will be paid £1.
  • Thus, it is in your best economic interest to partner with him/her if you think your paired participant is in the top half, whereas it is best for you not to partner with him/her if he/she is in the bottom half on the basis of the feedback you see for them. Please note whether you get to see their feedback or not depends on whether you paired participant chose for public or private feedback. Please recall that you can see an 'No feedback button' if they chose either public or private but with a higher chance if they chose private evaluation system.

    Importantly, the score of your randomly matched participant was not part of the distribution of scores your performance has been compared to. This implies that whether he/she is in the top half does not imply that you are less likely to be in the top half. Similarly, if he/she is in the bottom half, you are not more likely to be in the top half.

    Your paired participant's Hiring Decision


    Similarly, the participant you are paired with will also make a partnering decision about you. And before he/she makes the decision, they will also get to see your evaluation if you chose the public evaluation system and the feedback was not lost. They will also see no feedback if you chose private evaluation system or if the signal was lost when you chose the public evaluation system. This is to help them take the decision for partnering with you in the same way as we show you their feedback to help you make the same partnering decision.

    Importantly, if your paired participant decides to partner you, you will earn {{ Constants.Hired_payoff_high }} irrespective of your rank (and if this part of the task is randomly selected to count for you earnings). If not, you will earn {{ Constants.Hired_payoff_low }}. Please note though, your chances of being chosen for partnering with them are better if they think that you are in the top half of distribution. Their partnering incentives are just like yours.

    Thus, it is in your best economic interest that your paired participant decides to "partner" with you.

    The following are your payoffs if your paired participant decides to partner with you

    Your decision to partner or not with them Your partner is truly in the top half Your partner is truly in the bottom half
    Partner with the paired participant £4 + £1 = £5 0 + £1 = £1
    Do not partner with the paired participant £1 + £1 = £2 £1 + £1 = £2

    To continue with the comprehension questions for this part of task 2, please type in the cell below the number "40".
    {% formfield player.continue4 label="" %}
    {% next_button %} {% endblock %}