In the trade-off method for assessing utilities, consider the dollar amount X 1 that makes you indifferent
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In the trade-off method for assessing utilities, consider the dollar amount X1 that makes you indifferent between gambles A1 and A2, and X2 that makes you indifferent between gambles B1 and B2. Show that U(X2) = 2U(X1).
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Related Book For
Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly
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