motivation - Review E(aX bY Var(aX bY Pi = z I I(z = F pz

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C(e)= (Ke^2 )/2 K= is a constant E= amount of effort The formula tells us the cost of effort to an agent.
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Unformatted text preview: Review: E (aX + bY) Var (aX+bY) Pi = z- I I(z) = F + pz...
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This note was uploaded on 02/03/2011 for the course ECON 302 taught by Professor Pablo during the Spring '11 term at Universidad Carlos III de Madrid.

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