Question: See Figure 17.1. Such a utility function would be opposite of the Friedman-Savage Utility func- tion. The expected utility of a small gamble (a)

See Figure 17.1. Such a utility function would be opposite of the

See Figure 17.1. Such a utility function would be opposite of the Friedman-Savage Utility func- tion. The expected utility of a small gamble (a) is greater than if the outcome were certain (a*), while the expected utility of a large gamble (b) is less than if the outcome were certain (b*). Figure 17.1 Utility, u W b* W u(wealth) Wealth

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