The International Olympic Committee, meeting behind closed doors, has just chosen a site for the 2036 Summer
Question:
The International Olympic Committee, meeting behind closed doors, has just chosen a site for the 2036 Summer Olympics. They have not announced their decision, but you know the final competitors are Ypsilanti, Montreal, Rome, Madrid, Tokyo, Hanoi and Seoul. You are an expected utility maximizer whose utility function for money isu($x) =x. Considering the following bets on the question of which city gets to host The Games (with your credences along the top).
0.1 Ypsi | 0.2 Montreal | 0.05 Rome | 0.05 Madrid | 0.1 Tokyo | 0.4 Hanoi | 0.1 Seoul | |
A | $10 | $7 | $5 | $1 | $0 | $1 | $3 |
B | $2 | $4 | $10 | $0 | $1 | $4 | $5 |
How much money would you pay to learn, before having to decide between A and B, which continent the Games will he held on? Justify your answer & show work
How much would you pay to learn whether the Olympics will be held in North America (or elsewhere). (show work)
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr