3. AXIOM 3 (Equivalent standard prospects): Given any certain income level w between w and wh, there exists one and only one value " such that: A1.4 w* - P. (u", wh, WL) Note that this in effect defines a function u(w) (i.e., a utility function) which is bounded by 0 and 1, such that u(WL) = 0 and u(WH) = 1. 3. AXIOM 3 (Equivalent standard prospects): Given any certain income level w between w and wh, there exists one and only one value " such that: A1.4 w* - P. (u", wh, WL) Note that this in effect defines a function u(w) (i.e., a utility function) which is bounded by 0 and 1, such that u(WL) = 0 and u(WH) = 1