Kreps 18.1e

Kreps 18.1e - Utility of policies Utility if Utility if...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem 18.1F from Kreps Utility of policies Utility if Utility if Probability of getting job job no job 0.5 0.6 0.7 0.8 0.9 Policy A 254.95 254.95 254.95 254.95 254.95 254.95 254.95 Policy B 254.87 262.72 270.57 278.41 286.26 294.11 215.64 Policy C 251.44 260.99 270.53 280.08 289.62 299.17 203.72 Policy D 250.21 260.16 270.11 280.06 290.01 299.97 200.45 No Ins 250.00 260.00 270.00 280.00 290.00 300.00 200.00 Best ChoicePolicy A Policy B Policy B Policy C Policy D Revenue 2500000 350000 350000 50000 2000 Costs= 2500000 400000 300000 40000 2000 Profits are 0 on A, B, and D Profits are 10,000 on C
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Utility of policies Utility if Utility if Probability of getting job job no job 0.5 0.6 0.7 0.8 0.9 Policy A Policy B Policy C Policy D No Ins Income if Income if Premium Benefit job no job 50000-PremiumBenefit-Premium 25000 25000 25000 50000 46500 6500 3500 10000 49500 1500 500 2000 49980 180 20 200 50000 Income if Income if Premium Benefit job no job 50000-PremiumBenefit-Premium 25000 50000 3500 10000 500 2000 20 200...
View Full Document

This note was uploaded on 12/25/2011 for the course ECON 100c taught by Professor Bergstrom,t during the Fall '08 term at UCSB.

Page1 / 4

Kreps 18.1e - Utility of policies Utility if Utility if...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online