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1 Transformation of Preferences An individual claims to be maximizing: U = ( 1 + c ) ; ( 1 +q) * 2 where (,
1 Transformation of Preferences An individual claims to be maximizing: U = ( 1 + c ) "; ( 1 +q) * 2 where (", G; 7 , J2 ) is a two-state prospect (which means that , + 2 = 1). Is he a von Neumann-Morgenstern expected-utility (EU) maximizer? Would all his decisions be consistent with those of an EU maximizer
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