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Two risky gambles were proposed at the beginning of the chapter Game1 Win $30 with probability 0.5 Lose $1 with probability 0.5 Game 2 Win

Two risky gambles were proposed at the beginning of the chapter

Game1

Win $30 with probability 0.5

Lose $1 with probability 0.5

Game 2

Win $2000 with probability 0.5

Lose $1900 with probability 0.5

Many of us would probably pay to play Game 1 but would have to be paid to participate in Game 2. Is this true for you? How much would you pay (or have to be paid) to take part in either game?

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