Question
Suppose there are 3 balls in a container. 1 ball is purple. The remaining 2 balls are white or pink in unknown proportion. A ball
Suppose there are 3 balls in a container. 1 ball is purple. The remaining 2 balls are white or pink in unknown proportion. A ball of the winning color is worth $100, and a decision maker is given the opportunity to make one random draw from the container. The decision maker is asked the following two questions:
Q1: If you could pick which color is the winning color before making the random draw, would you prefer purple or white to be the winning color?
Q2: If you could pick two colors to be winning colors before making the random draw, would you prefer purple & pink to be the two winning colors, or white & pink?
Provide a choice in Q1 and a choice in Q2 that, together, wouldNOTviolate subjective expected utility.
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