sempronius has to choose between two lotteries and . lottery is distributed as , whereas is distributed as . which lottery will sempronius prefer in each case below? (a) if he is an expected utility maximizer with , where r is the result of the lottery as in the good old times of bernoulli and cramer. (b) if he is infinitely risk averse (or infinitely pessimistic). (c) if he is an rdeu decision maker with and a function f(p) such that: eeckhoudt, louis; gollier, christian; schlesinger, harris. economic and financial decisions under risk (p. 229). princeton university press. kindle edition.
