Answers to Problem 19.3 in Kreps Here is my proposed answer. a) If Entrepreneur bears all the risk and tries hard, her utility will be p[removed], 000, 000 − 500) .9(0 − 500) = .1(10, 000) − 500 = 500 If she doesn - Kreps - Document - PDFSEARCH.IO

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	Answers to Problem 19.3 in Kreps Here is my proposed answer. a) If Entrepreneur bears all the risk and tries hard, her utility will be p[removed], 000, 000 − 500) + .9(0 − 500) = .1(10, 000) − 500 = 500 If she doesn Add to Reading List Document Date: 2007-06-01 12:49:18 Open Document File Size: 35,68 KB Share Result on Facebook Currency USD / / Position If Entrepreneur / entrepreneur / / SocialTag Statistics Z1 Z2 Risk aversion Expected utility hypothesis Computing Knowledge Mechanical computers Utility Decision theory

Answers to Problem 19.3 in Kreps Here is my proposed answer. a) If Entrepreneur bears all the risk and tries hard, her utility will be p[removed], 000, 000 − 500) + .9(0 − 500) = .1(10, 000) − 500 = 500 If she doesnAdd to Reading List