Question: Tim and Randy both have simple prospect theoretic preferences for money (m) relative to their reference point (r). Both have preferences of the following form:

following form: m-r when mar Vm,r) - { Mm-r) when m

Tim and Randy both have simple "prospect theoretic" preferences for money (m) relative to their reference point (r). Both have preferences of the following form: m-r when mar Vm,r) - { Mm-r) when m

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