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picture1_Microeconomics Pdf 125748 | Uncertaintynew


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File: Microeconomics Pdf 125748 | Uncertaintynew
microeconomics 1 uncertainty lotteries expected utility money lotteries stochastic dominance microeconomics 1 uncertainty alex gershkov http www econ2 uni bonn de gershkov gershkov htm 11 november 2008 1 31 microeconomics ...

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...Microeconomics uncertainty lotteries expected utility money stochastic dominance alex gershkov http www econ uni bonn de htm november a decision maker faces choice among number of risky alternatives each alternative can lead to one possible outcomes c is the nite set all with n denition simple lottery l p pp i collection probabilities for sure x xn we write as xi pi and denote by over be represented point in simplex r called dimensional its three outcome case graphically an equilateral triangle altitude perpendicular then interpreted probability at opposing vertex thus every represents q equal third f...

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