Draw a utility function over income u (I) that describes a man who is a risk lover

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Draw a utility function over income u (I) that describes a man who is a risk lover when his income is low but risk averse when his income is high. Can you explain why such a utility function might reasonably describe a person’s preferences?

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:20 AM

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Draw a utility function over income u (I) that describes a man who is a risk lover

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The utility function will be Sshaped as illustrated below Preferences might be like this for ...View the full answer

Microeconomics

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