There are four axioms that underpin Expected Utility Theory. Match the names of these axioms to the four descriptions below. Prompts If lottery A is preferred to lottery B; and lottery B is preferred to lottery C; then lottery A must be preferred to lottery C. For every pair of possible lotteries, A and B; either A is preferred to B, B is preferred to A, or A is valued indifferently to B. There is nothing so good (or so bad) that it does not become insignificant if it occurs with small enough probability. Submitted Answers Choose a match Choose a match Choose a match

There are four axioms that underpin Expected Utility Theory. Match the names of these axioms to the four descriptions below. Prompts If lottery A is preferred to lottery B; and lottery B is preferred to lottery C; then lottery A must be preferred to lottery C. For every pair of possible lotteries, A and B; either A is preferred to B, B is preferred to A, or A is valued indifferently to B. There is nothing so good (or so bad) that it does not become insignificant if it occurs with small enough probability. Submitted Answers Choose a match Choose a match Choose a match

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.11P

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