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This problem revisits the role of RSD in inducing full participation. In class, we showed that whenever the decision to participate is based on stochastic

This problem revisits the role of RSD in inducing full participation. In class, we showed that whenever the decision to participate is based on stochastic dominance no individual that finds her endowment to be her most preferred object would participate in RSD. This problem illustrates the relationship be- tween stochastic dominance and expected utility, in terms of participation, in the following example

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