Welocome to the experiment. Please read the instruction below carefully.
You are about to participate in a session on decision-making. In this experiment you will be asked to make decisions in 10 rounds.
Please do not close this page before you finish the whole 10 rounds because you will not be able to continue where you leave.
At the start of the session, you are given an endowment of {{ Constants.endowment }}.
In each round, you need to decide whether to invest in a project which may give you {{ Constants.multi }} times of your investment as total return. However, the success of the investment is determined by a lottery whose probablity is fixed across all the rounds.
If you win the lottery, the investment is successful and you get these returns immideiately.
In other cases, you cannot get that revenue at this stage but need to do a further decision.
You need to add another investment which will determine the probablity of getting that revenue of the same amount.
This second investment won't change the revenue of the investment.
Then the result of the investment will be determined by another lottery whose probability is determined by the ratio of the second investment to the initial investment. This relation is shown in the equation below:
Probability of success in the second opportunity= 0.4×k
k=the second investment/the initial investment
After each round, any money not invested will get an interest of {{ subsession.interestrate }}%.
The investment in each round is independant from that in other rounds. So what you do in this round won't affect what will happen in the next round.
After the experiment, the person who gets the highest final wealth will be paid £5.
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