a DD model with 3 periods t=0,1,2. Each consumer is endowed with 1 potato at t=0, has probability 1/2 of becoming hungry at t=1 and probability 1/2 of :oming hungry at t=2. Consumer utility is given by u(c)=1-1/c. nrage technology generates a gross return of 1 from period 0 to 1, and return of 1 from period 1 to 2. estment technology generates a return of 3 from period 0 to period 2. If an investment is liquidated early in period 1, its return is reduced to 0.5. :ipose all consumers in town pool their potatos together. Of the 100 potatos, they store 20 and invest 80. en t=1 comes, early types are fed with the stored potatoes. len t=2 comes, late types are fed with the invested potatos. 2 expected lifetime happiness of a consumer = ep 3 digits after decimal points)