An urn contains 300 colored marbles; 100 are red and the other 200 are blue and...
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An urn contains 300 colored marbles; 100 are red and the other 200 are blue and green. We don't know how many blues or greens: just that the sum of blues and greens is 200. We will reach into the urn and select a marble at random. People are asked the following two questions: - You receive $1000 if the marble selected is of a specified color. Would you rather the specified color be red or blue? - You receive $1000 if the marble selected is not of a specified color. Would you rather the specified color be red or blue? Most people strictly prefer to specify red in both cases. Is it possible to construct a utility function that is consistent with these preferences? An urn contains 300 colored marbles; 100 are red and the other 200 are blue and green. We don't know how many blues or greens: just that the sum of blues and greens is 200. We will reach into the urn and select a marble at random. People are asked the following two questions: - You receive $1000 if the marble selected is of a specified color. Would you rather the specified color be red or blue? - You receive $1000 if the marble selected is not of a specified color. Would you rather the specified color be red or blue? Most people strictly prefer to specify red in both cases. Is it possible to construct a utility function that is consistent with these preferences?
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