{% extends "global/Page.html" %} {% load staticfiles otree %} {% block title %} A Game {% endblock %} {% block content %}
Suppose you are asked to allocate ₹1000 between a “risky option” and a “safe option”. The amount you put in the safe option remains as it is. Your earnings from the amount you put in the risky option depends on chance. A coin will be flipped--if it comes heads, your earnings from the risky option will be zero. If it comes tails, your earnings from the risky option will be 2 times the amount you put in that option. Your total earnings from the decision is the sum of your earnings from the safe option and your earnings from the risky option.
For example, imagine that you put ₹500 into the risky option and ₹500 into the safe option. The safe option will yield you ₹500 for sure. On the other hand, the return on the ₹500 invested in the risky option will depend on the flip of a coin. That is, with 50% probability this will give you ₹ 500*2 (=₹1000) while with the same probability it will return ₹0. As a result, depending on the coin flip, your total return will be either ₹1500 or ₹500.
{% formfield player.Riskpreferences label="How much of the ₹1000 would you like to invest in the risky option in percentage terms (0-100)." %}