Question
Draw a utility function over income u(I) that describes a man who is a risk lover when his income is low but risk averse when
Draw a utility function over income u(I) that describes a man who is a risk lover when his
income is low but risk averse when his income is high. Can you explain why such a utility
function might reasonably describe a person's preferences?
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
