Question
A consumer with Utility function over certain prospect U(x) = x 1 2 , where x is the income. Suppose he is offered a lottery
A consumer with Utility function over certain prospect U(x) = x
1
2 , where x is the
income. Suppose he is offered a lottery ticket with a prize of 100. There will be exactly 10
tickets sold on this lottery. How much would he be willing to pay for one ticket?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
