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Question B4: Assume prior to Covid-19, a semi-professional footballer earned a wage of 196 per game played and is known to be risk-averse with a
Question B4: Assume prior to Covid-19, a semi-professional footballer earned a wage of 196 per game played and is known to be risk-averse with a utility function of the following form: U = Vincome. Assume the player is offered a bribe of 245 to 'spot-x' a particular proposition within a match in which he is selected to play (e.g., through receiving a red card for dangerous play). Further assume the player knows the probability of detection for 'spotxing' is 0.35 and that, if caught, a protracted custodial sentence is imposed. Implement the relevant calculations and illustrate using an appropriate diagram wheth_e_r_or_ not the player will take the bribe in these circumstances. During Could-19 the player's payment per game is reduced by 52. What is the implication of this for your conclusion based on the pre-Covid- 19 period? [1 0 marks]
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