t Steven will get the coronavirus in 2021. If he gets vaccinated, that risk falls to 1%. Without a vaccines, Steven gets -6000 utils if he gets covid and 0 utils if he stays healthy. Because of side effects, he gets -100 utils from the vaccine if he stays healthy and -6100 if he gets sick anyways. What will Steven

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter7: Uncertainty
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#4. Without a vaccine, there is a 10% chance that Steven will get the coronavirus in 2021. If he gets vaccinated, that risk falls to 1%. Without a vaccines, Steven gets -6000 utils if he gets covid and 0 utils if he stays healthy. Because of side effects, he gets -100 utils from the vaccine if he stays healthy and -6100 if he gets sick anyways. What will Steven do?

a. He will get vaccinated

b. He will not get vaccinated

c. He will get vaccinated if he is risk-averse but not if he is risk-loving

d. He will get vaccinated if he is risk-loving but not if he is risk-averse

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