You have been randomly and anonymously paired with another player. Each of you will be randomly assigned to be Participant A or Participant B. You will learn your role before making any decision.

Participant A will propose a contract to B that has 2 components:

**Fixed Payment**, which can be any number from -30 to 30**Return Share**, which can be a multiple of 10%, that is 10%, 20%, … , 90%, or 100%

Note that a negative fixed payment means that Participant B will have to pay the amount to Participant A.

Once Participant A has submitted the contract, Participant B must decide whether to accept or to reject it. If rejected, A will receive nothing while B will receive 10 points. If accepted, Participant B then chooses:

**Effort Level**, which can be any whole number from 1 to 10

Effort is costly only to Participant B and determines the total return,
which will be apportioned according to the proposed return share. *The
following table shows the relationship between B's effort, the cost of
effort, and the resulting total return:*

Effort Level | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
---|---|---|---|---|---|---|---|---|---|---|

Effort Cost | 0 | 4 | 8 | 12 | 18 | 24 | 32 | 40 | 50 | 60 |

Total Return | 14 | 28 | 42 | 54 | 70 | 84 | 98 | 112 | 126 | 140 |

Given that the contract is accepted, Participant A will receive:

**(100% – [B’s Return Share in %]) × [Total Return] – [B’s Fixed
Payment]**

and Participant B will receive:

**[B's Return Share in %] × [Total Return] + [B's Fixed Payment]
– [B's Effort Cost]**

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