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EC311 · Intermediate Microeconomics

EC311 / TOPIC 16

5.3 Risk and expected utility

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Why can equal expected wealth deliver different utility under risk?

Two clocks, rising stacks of coins, and a balance holding a bank building and a blue geometric object — VISUAL NOTE · Time and risk Outcomes are uncertain, but choices can be evaluated

Choose a sure 90 or an equal chance of 64 and 144?