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1 Transformation of Preferences An individual claims to be maximizing: U=(1 c_1 )^(_1 ) (1 c_2)^(_2 ) where (c_1,c_3;_1,_2 ) is a two-state prospect (which
1 Transformation of Preferences An individual claims to be maximizing: U=(1 c_1 )^(_1 ) (1 c_2)^(_2 ) where (c_1,c_3;_1,_2 ) is a two-state prospect (which means that _1 _2=1). Is he a von Neumann-Morgenstern expected-utility (EU) maximizer? Would his decisions be consistent with those of an EU maximizer
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Managerial Economics Foundations of Business Analysis and Strategy
Authors: Christopher Thomas, S. Charles Maurice
11th edition
978-0078021718
