Question: Suppose a consumer's preference relation over gambles satises both the substitution and reduction to simple gambles axioms (a) Show that the independence axiom also holds

Suppose a consumer's preference relation over gambles satises both the substitution and reduction to simple gambles axioms

(a) Show that the independence axiom also holds (2)

(b) For two gambles, given the independence axiom holds show that if g g' and (0,1) then g g + ( 1- ) g' g' (2)

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