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Alicia turns down a 50-50 gamble of losing $10 or gaining $11 at every level of wealth. It is possible to explain Alicia's risk
Alicia turns down a 50-50 gamble of losing $10 or gaining $11 at every level of wealth. It is possible to explain Alicia's risk preferences with the following concave utility function over money: U(m) = ln(m) (where In is the natural logarithm).
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