Descriptive aspects

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 . )

This is a sample question

Need help with a similar assignment?

Place an order at Study Pirate

Attach all custom instructions.

Make Payment. (The total price is based on number of pages, academic level and deadline)

We’ll assign the paper to one of writers and send it back once complete.