If Akira does not buy theft insurance for his motorcycle, what is his expected wealth and his
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If Akira does not buy theft insurance for his motorcycle, what is his expected wealth and his expected utility?
Akira lives in a neighborhood in Japan in which 25 percent of the vehicles are stolen every year. He recently purchased the latest model of his favorite motorcycle, which cost him ¥1.8 million. (This is Akira’s only wealth.)
The table shows Akira’s utility of wealth schedule.
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