Documents Choice under Uncertainty. Introduction Many choices made by consumers take place under conditions of...

Slide 1Choice under Uncertainty Slide 2 Introduction Many choices made by consumers take place under conditions of uncertainty Therefore involves an element of risk We examine…

Documents Chapter 12 Uncertainty Consider two lotteries L 1 : 500,000 (1) L 1 ’: 2,500,000 (0.1), 500,000...

Slide 1Chapter 12 Uncertainty Consider two lotteries L 1 : 500,000 (1) L 1 ’: 2,500,000 (0.1), 500,000 (0.89), 0 (0.01) Which one would you choose? Another two lotteries…