Question: Draw a utility function over income u (I) that describes a man who is a risk lover when his income is low but risk averse

Draw a utility function over income u (I) that describes a man who is a risk lover when his income is low but risk averse when his income is high. Can you explain why such a utility function might reasonably describe a person’s preferences?

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The utility function will be Sshaped as illustrated below Preferences might be like this for ... View full answer

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