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Im not sure how to answer question. Espcially part a. How do we answer the question when there is negative prospect . We observe (1)

Im not sure how to answer question. Espcially part a. How do we answer the question when there is negative prospect

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. We observe (1) (500)>-(1000,0.5); (2) (400005) >- (-500); (3) 0 >- (100; 0.5; -100, 0.5) a. Show that expected utility with a concave mction u(x) could not explain the three patterns jointly b. Show that expected utility with the following u(x) could explain the three patterns jointly x\" for x 2 0 y(x)3 for x

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