Consider a finite set of prizes x and probabilities p on, Ask an Expert

Economics

Consider a finite set of prizes X and probabilities P on them. Suppose that an expected utility maximizer's preferences > on P have an expected utility representation with utility function on prizes u : X->R.

Suppose that v(.) = au(.)+b for real numbers a > 0 and b. Show that v also represents >.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9281058

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