Suppose we have a gamble G with three monetary prizes x1, x2, x3 where x1 < 0, x2 > 0, and x3 > 0 that each occur with strictly positive probabilities p1, p2, p3. (a) Kamala is decision maker who maximizes expected value. Write out the expression for the function that describes her valuation of the gamble G. (b) Abhishek is a decision maker who maximizes expected utility, and his utility function is u A(x). Write out the expression for the function that describes his valuation for the gamble G. (c) Wole is a DM who behaves according to prospect theory; his value function is v(x) = ( x 3 4 if x 0 2(x) 3 4 if x < 0 . What is Wole's reference point? What is the expression that describes his valuation for the gamble G? 1 (d) Saskia and Jorge are taking a class in behavioral economics, and are alike in all relevant (risk attitude, income level, ability, etc.) respects. During an experiment they are participating in as part of the class, the instructor randomly assigns a Marist mug to Saskia. The instructor then asks Saskia how much she would be willing to accept for the mug, and she says $12. The instructor asks Jorge for how much he would be willing to pay for the mug, and he says $7. Given that the two students were identical in all relevant respects before the experiment, what is the explanation for the difference in their responses, according to prospect theory?