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    INSTRUCTIONS PAGE 3/5
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		<b><u>How the government sells bonds </b></u><br><br>
		The government will sell bonds from the highest to the lowest price offered by the five investors in the group, until it finances the total debt. More precisely, it  will sell bonds at the highest price bid by an investor (meaning the lowest interest or cost for the government). If it cannot cover all the debt at the highest price, it will go to the next price and so on. If at the last price at which bonds are sold, the demand is higher than the remaining debt to be covered, each investor receives a share of bonds proportional to their bidding quantity. <br><br> 
		<b><u>Government default </b></u><br><br>
		The government can also default on its debt. In this experiment, default can happen for two reasons: <br><br>
		1. If the total value of bonds bid by the 5 investors at the beginning of the period plus government income does not cover the past period debt, the government must default (because it cannot pay back the pending debt).<br><br>
		2. The level of the debt reaches a solvency limit defined as the sum of funds of all investors. As each participant can only initially borrow 1000 EC, the initial solvency limit is 5000 EC. This default limit means that debt levels are so high that even if everyone invests all their income, the government debt cannot be financed.<br><br>
		<b>If the government defaults</b>, those who have bid to purchase government bonds at the beginning of the period <b>lose all their investment</b> (i.e,zero return). After the government
        defaults, available funds in the next period, <b> for all investors</b>, are cut by 30%. This means that your available funds in the period after the first default are 700 EC.

		Default is also costly for the economy, so when it happens both the government debt <b>also decreased by 30%</b>. <br><br>
		If there are multiple defaults, the debt level and your funds of participants who invest in the default period cut by 30% after each default.  <br><br>
		After the 10th period of each round, a new round will start where the level of Government debt is reset to 2500 EC and  your available funds to 1000 EC. Groups are also changed so you will most likely play with different participants in the three rounds. <br><br>
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