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A prominent singer / songwriter recently received two offers for the rights to her music. BMI offered her a large contract where she would get
A prominent singersongwriter recently received two offers for the rights to her music. BMI offered her a large contract where she would get $ million, but only if there were more than downloads of her songs. On the other hand, Sony offered her a guaranteed $ million. Given this information, which of the following statements is true?
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If the artist thinks there will be more than downloads with probability and signs with BMI, then she must be risk averse.
If the artist thinks there will be more than downloads with probability and signs with Sony, then she must be risk averse.
If the artist thinks there will be more than downloads with probability and signs with BMI, then she must be risk neutral.
If the artist thinks there will be more than downloads with probability and prefers to sign with Sony, then she must be risk averse.
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