In each round, you will receive an individual payoff which consists of a fixed wage, a commission, and cost which occur in case you allocate working hours to Project A.

Fixed Wage

The Fixed Wage is 200 ECU you receive each time you start a new round.

Commission

The commission increases your Fixed Wage and depends on the “success” of Project A. The success is calculated by the minimum number of hours spent on Project A by any of your team members (denoted by h_min). In other words, the project's success is determined by the team member who contributes the least amount of time to the project. To calculate your commission, we will multiply the minimum number of hours allocated to Project A by 6 ECU, i.e., Commission=6 ECU x h_min (and is the same for all team members)

Costs for working on Project A

We will deduct 5 ECU for each hour you allocate to Project A from your payoff, i.e., Cost=5 ECU x h_A.

Below you find the formula we use to calculate your individual payoff consisting of the fixed wage plus the commission minus the costs from working on Project A. You do not need to memorize this formula – the computer program will give you payoff tables at any point in the rounds where you need to make a decision.

Payoff = 200 ECU + (6 ECU × h_min) - (5 ECU × h_A)

This yields the following payoff table: