Question: a. Suppose you display -maxmin expected-utility preferences, with = 1 (fully ambiguity averse). What tax will you choose? What level of social welfare will

a. Suppose you display Î±-maxmin expected-utility preferences, with Î± = 1 (fully ambiguity averse). What tax will you choose? What level of social welfare will be realized if a catastrophic climate change is not realized? You may use a spreadsheet to determine the answer if needed.
b. Suppose Î± = 0 (fully ambiguity loving). What tax will you choose? What level of social welfare will be realized if a catastrophic climate change is not realized?

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