Would his decisions be consistent with the of eu maximizer

Reference no: EM133659820

Problem: Transformation of Preferences An individual claims to be maximizing: U?=(1 c_1 )?^(π_1 ) ?(1 c_2)?^(π_2 ) where (c_1,c_3;π_1,π_2 ) is a two-state prospect (which means that π_1 π_2=1). Is he a von Neumann-Morgenstern expected-utility (EU) maximizer? Would his decisions be consistent with those of an EU maximizer?

Reference no: EM133659820

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