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Suppose a consumer 's preference relation over gambles satises both the substitution and re- duction to simple gambles axioms (a) Show that the independence axiom
Suppose a consumer's preference relation over
gambles satises both the substitution and re-
duction to simple gambles axioms
(a) Show that the independence axiom also holds.
(b) For two gambles, given the independence ax-
iom holds show that if g g ' and (0,1)
then g g + (1 - ) g' g '
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