Given these two lottery choices: A: [0.75, $3k; 0.25, $0] B: [1.0, $2k; 0.0, $0] and...

 

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Given these two lottery choices: A: [0.75, $3k; 0.25, $0] B: [1.0, $2k; 0.0, $0] and C: [0.3, $3k; 0.7, $0] D: [0.4, $2k; 0.6, $0] People seem to prefer B over A, and C over D What are the implications of this observation? What is the contradiction here? What assumption did you use to arrive at your contradiction? Given these two lottery choices: A: [0.75, $3k; 0.25, $0] B: [1.0, $2k; 0.0, $0] and C: [0.3, $3k; 0.7, $0] D: [0.4, $2k; 0.6, $0] People seem to prefer B over A, and C over D What are the implications of this observation? What is the contradiction here? What assumption did you use to arrive at your contradiction?