Some descriptive features of CE The expected utility assumption and unanimity about the probabilities allow us to derive some descriptive aspects of a CI Proposition 3 Let( P 1 , P 2 ) and T = ( T 1 7 2 ) . ( 1 ) If W 1 = W 2 , then ( a )there is a CE with p = T and ( 6 ) there is no other CE . ( it ) If W . > W 2then any CE has pi/ P 2 < 3 / 2 . ( in ) If W . < W 2 , then any CE has pi / P 2 )Ty / T 2

This proposition describes circumstances in which the CE permits the expat purchase of what is called fair insurance or fair bets and circumstances in which it does not . ( A fair bet means that the pre- outcome value of the bets zero . )