There is a fixed probability that an event occurs. Such an event reduces your endowment to up to {{ damage }}%. You will learn the corresponding probability on the decision screen. It will be the same for all members of your group over all {{ C.NUM_ROUNDS }} periods. While you do not have any influence on the occurrence of an event, you can affect the damage it evokes:

The more you and the rest of your group allocate to the group account, the smaller the damage if an event occurs. Conversely, the lower the contributions, the higher the damage if an event occurs.

More precisely, there won't be any damage if everybody in the group allocates his or her whole endowment to the group account – even if there was an event. If none of you allocates anything to the group account, an event will cause a damage of {{ damage }}% of the endowments of each and everyone of you.

The following figure visualizes this relationship: moving from left to right, that is allocating none to all of your endowments, the damage that occurs in case of an event decreases.

Note that we provide a calculator behind the -symbol. It takes the above-mentioned formula, as well as the quota and helps you to consider different cases. As such, it is most important that you understand that higher contributions lead to lower damage in case of an event.

This can also be explained by a formula. Click here to learn more.