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A consumer has wealth w > 1000 , and has constant relative risk aversion R ( w ) = 1 for all w > 0

A consumer has wealth w>1000, and has constant relative risk aversion R(w)=1 for all w>0.

He is faced with a fair lottery, where he has a 50% chance of winning.

If he wins, his wealth will be w+1000, and if he loses, his wealth will be w1000

What price p as a function of w, is the consumer willing to pay to avoid playing this lottery

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