Question: need help with behavioral econ . Consider the following lottery: $20 i L= $100 i $0 % Suppose the agent is loss averse. Assume the

need help with behavioral econ

need help with behavioral econ . Consider the following lottery: $20 i

. Consider the following lottery: $20 i L= $100 i $0 % Suppose the agent is loss averse. Assume the agent uses the following proba- bility weighting flmction: MID-I _ p (p) (115+(119)2 and evaluates gains and losses according to: (:1: Ti); if 1' > H v(:1:|r,-) = /\\(r,- 2:); if .1: S r,- for A 21. (3.) Evaluate for r = 0 (b) Evaluate for r = 20 (c) Evaluate for r = E[L]

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