Question 25
An individual has a certainty equivalent coefficient equal
to 0.4. What is the most this individual would pay to play a
game that pays $50 or $30 with equal probability?
Question 26
In repeated games, a strategy that involves attacking
players that attack you and cooperating with players that
cooperate with you is a
Question 27
One difference between the public interest theory and the
economic theory of regulation is
that the former
Question 28
The prisoners' dilemma explains why
Question 29
A strategy that is best regardless of what rival players do
is called
Question 30
An investment opportunity will pay $50 with a 10%
probability, $20 with a 40%
probability, and will result in a loss of $20 with a 50%
probability. What is the expected
value of the investment?