Konstantin decides that he wasn't quite sure of his risk preference. What risk tolerance would make him indifferent between the two offers? ' Konstantin meets secretly with his friend the clairvoyant,...


Konstantin decides that he wasn't quite sure of his risk preference. What risk tolerance would make him indifferent between the two offers? '


Konstantin meets secretly with his friend the clairvoyant, who will reveal the outcome of any uncertainty Konstantin chooses. Draw Konstantin's new decision diagram. How much should Konstantin pay for his friend's information?



May 04, 2022
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