Consider the setup from Question 1. Janet offers her friend Sam (who has identical preferences and initial wealth) the following proposition: They buy the ticket together, and share the cost and proceeds equally. Should Sam accept the offer? а. Yes, Sam should accept the offer. b. No, Sam should reject the offer. С. Sam would be indifferent between accepting an rejecting the offer. O d. There is not enough information to determine if Sam should accept or reject the offer.

Consider the setup from Question 1. Janet offers her friend Sam (who has identical preferences and initial wealth) the following proposition: They buy the ticket together, and share the cost and proceeds equally. Should Sam accept the offer? а. Yes, Sam should accept the offer. b. No, Sam should reject the offer. С. Sam would be indifferent between accepting an rejecting the offer. O d. There is not enough information to determine if Sam should accept or reject the offer.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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