The class is divided into teams of five. Let’s assume a firm with 5,000 employees has a pool of 50 million dollars annually to allocate either to bonuses for individual contributors or to support activities that enhance the welfare of all employees (such as day care or paid sick leave). Each team is asked to divide the pie into performance-based bonuses for individual contributors versus alternative allocation of cash resources to programs designed to improve the welfare of all employees. The instructor will play devil’s advocate, asking each team probing questions as to why they chose a particular proportion for these alternative allocations.