Question
Could you please answer the following questions in one paragraph? 1- Suppose that the probability density of heads will, with probability be drawn from the
Could you please answer the following questions in one paragraph?
1- Suppose that the probability density of heads will, with probability be drawn from the uniform density on[0,.5] and probability on(.5,1] . Would an expected profit maximizer behave any differently than if they were told the coin is uniform on[0,1] ?
2- Suppose that the coin probability is known to be drawn from a uniform 0,1 density. How would a gambler with Hurwicz preferences assess the bet differently from a risk neutral gambler if the bet is to be taken prior to the draw of the coin probability?
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