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Consider the St. Petersburg paradox. Suppose the decision maker has an exponential utility function with A=5 and B=2 and his/her risk tolerance level R=5,000. What
Consider the St. Petersburg paradox. Suppose the decision maker has an exponential utility function with A=5 and B=2 and his/her risk tolerance level R=5,000. What is the highest price he/she is willing to pay for the lottery?
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