Risk-Loving Utility 12 EUF7 $0 $45 $90 Wealth
Risk-Loving $0 $90 Wealth 12 2 EU=7 $45 Utility
Risk loving Utility U($45<EU 3 risk-loving 12 MU rises as wealth rises 0>0 EUF7 U($45) $0 $45 $90 Wealth
Risk Loving $0 $90 Wealth 12 U($45) < EU risk-loving. 2 EU=7 $45 MU rises as wealth rises. U”>0. U($45) Utility
Risk Neutral Utility 12 EUF7 $0 $45 $90 Wealth
Risk Neutral $0 $90 Wealth 12 2 EU=7 $45 Utility
Risk Neutral Utility U($45 =EU 3 risk-neutrality 12 MU constant as wealth rises U($45)= U=0 EU=7 $0 $45 $90 Wealth
Risk Neutral $0 $90 Wealth 12 U($45) = EU risk-neutrality. 2 $45 MU constant as wealth rises. U($45)= U”=0. EU=7 Utility
Indifference Curves under Uncertainty State-contingent consumption plans that give equal expected utility are equally preferred
Indifference Curves Under Uncertainty State-contingent consumption plans that give equal expected utility are equally preferred