Suppose that your value function is v (x) =px/2 for gains and v (x) = 2p |x| for losses.Last night you lost e9 in a bet. However, there was a silver lining. On your way home you found e2 lying on the ground.

(a) Plot the value function.

(b) If you integrate the loss and the gain, what is the total value?

(c) If you segregate the loss and the gain, what is the total value?

(d) Which is better, to integrate or to segregate?