What is expected utility theory
Problem 1: What is expected utility theory?
Problem 2: On what assumptions is the theory based, and how plausible are these assumptions?
Problem 3: Explain the Ellsberg paradox?
Problem 4: Do such paradoxes imply we should abandon the theory?
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Determine the equilibrium outcome, or outcomes, when both the seller and the buyer observe directly the quality of any car traded.
Boston and New York are approximately 280 miles apart. One train leaves Boston traveling towards New York. How far has each train traveled when they meet?
Q1. Define "risk averse". Q2. Why does a risk averse agent offered actuarially fair insurance choose to insure fully?
Two cars leave a city traveling in the same direction. One travels at 60 mph and the other at 45 mph. How long before the cars are 60 miles apart?
Problem 1: What is expected utility theory? Problem 2: On what assumptions is the theory based, and how plausible are these assumptions?
Two angles are said to be complementary if the sum of the measures of their angles is 90 degrees. What is the measure of the smaller angle?
Assess the quality of the cultural experience as related to the assignment expectations.
Solve for the optimal choice. Graph this solution. How many hours of work is the consumer working? What is her income?
Two angles are said to be supplementary if the sum of the measures of their angles is 180 degrees. What is the measure of the larger angle?
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