{% extends "global/Page.html" %}
{% load otree static %}

{% block title %}
    Instructions - 3 - Task
{% endblock %}

{% block content %}
    Your per-period utility follows from a well-known and simple square root function(√): The utility in a period is the square root of the number of token you consume in that period. The interest rate for borrowing and saving is the same, and equals 5% and the discount factor equals 0.99. The discount rate specifies your time preference. Intuitively, it means that 100 tokens utility you get tomorrow is worth 99 tokens utility today. Similarly, 100 tokens utility you get two days later is worth 99(=0.99*100) tokens utility if you get it tomorrow and 98.01((=0.99*0.99*100) tokens utility if you get it today.
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    Finally, the exchange rate in the experiment to convert your lifetime utility in tokens into Euro is 0.05. Hence, utility of 100 tokens yields 5 Euros.
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    Below, the key concepts of the experiment will be explained through examples.

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    {% next_button %}
{% endblock %}