Suppose that a risk-averse decision maker faces a choice of two lotteries, 1 and 2. The lotteries

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Suppose that a risk-averse decision maker faces a choice of two lotteries, 1 and 2. The lotteries have the same expected value, but Lottery 1 has a higher variance than Lottery 2. What lottery would a risk-averse decision maker prefer?

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 05:07 AM

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Suppose that a risk-averse decision maker faces a choice of two lotteries, 1 and 2. The lotteries

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Microeconomics

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