經濟問題 (Risk averse..) 很急!
Assume that you offer your roommate the following gamble: you flip a coin, if it's “heads”, you give him
$8, if it's “tails” he gives you $10. Assume he accepts. Please indicate if you can uniquely determine the type of risk
preference with which your roommate's decision is consistent.
A. risk averse preference B.risk seeking preference C.risk neutral preference
Give a brief explanation for your answer
Qn2) George Akerlof is considering the purchase of a used car that has a book-value of $16,000. He believes
that there is a 10% chance that the car's transmission is damaged. If the transmission was indeed damaged, the car
would be worth only $11,000 to Mr. Akerlof. The dealer offered to sell the car to Mr. Akerlof for $15,400, and he
accepted. Based on this information, what could be the type of his preference toward risk? Explain.
- 股癌Lv 71 0 年前最佳解答