Draw conclusion about the curvature of the utility function

Reference no: EM131477939

Question: 1. Explain why one cannot use the certainty equivalent approach with a risky prospect with more than two outcomes to draw a conclusion about the curvature of the utility function.

2.. This study shows that for equal probability weights, CPT is violated. Suggest a study to test CPT with unequal and small probabilities.

Reference no: EM131477939

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