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Unformatted text preview: a. Raise awareness by making people more risk averse. b. Makes the curve even more concave. Move the certainty equivalent to the left. c. Ie. Scare the people into believing the world is scarier than it really is. 4. Ways that the newcomer raise own Utilities, a. Flatten the curve b. Raise certainty equivalence 1. Single peak preferences : preferences are single peaked if they always rise and never fall off or vice versa. Unique point that provides the decision maker with a single peak in utility...
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- Spring '08
- Utility, Certainty Equivalent, risk averse person