Phred owns a lottery ticket, and Phred and Hilda (and all the other characters in this problem) make all their decisions on the basis of maximizing their own subjective utility; their preferences and utilities agree with the von Neumann-Morgenstern axioms.

1. Explain why Phred might prefer to sell the ticket to Hilda rather than keeping it, and Hilda might prefer to buy it than to not buy it, even if they have the same utility function and the same initial wealth (except for the lottery ticket, so Phred starts off slightly better off than Hilda).
2. Now Penelope is considering buying a different lottery ticket from Hu. Could it ever be the case that Penelope would want to buy a ticket from Hu for a given price, and then immediately turn around and sell it to Alberto for a lower price?