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Unformatted text preview: Expected utility : Note that the function U ( p ) is linear: U ( K k = 1 k p k ) = X z Z [ K k = 1 k p k ] ( z ) v ( z ) = X z Z [ K X k = 1 k p k ( z ) ] v ( z ) = K X k = 1 k [ X z Z p k ( z ) v ( z ) ] = K X k = 1 k U ( p k ). It follows that any such preference relation satisFes I . Since the function U ( p ) is continuous in the probability vector, it also satisFes C . Increasing the probability of a good consequence : Such a preference relation satisFes the two axioms since it can be represented by the expectation of v where v ( z ) = 1 for z G and v ( z ) = 0 for z B ....
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 Fall '10
 aswa
 Utility

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