The ostrich farm Jen and Joe have an ostrich farm. They have just learned that the farm has been struck by an unusual virus. According to their vet, if they do nothing only 200 of the 600 animals will...

The ostrich farm Jen and Joe have an ostrich farm. They have just learned that the farm has been struck by an unusual virus. According to their vet, if they do nothing only 200 of the 600 animals will live. However, the vet offers an experimental drug. If this drug is used, the vet says there is a 2/3 chance that all the animals will die, but a 1/3 chance that all the animals will live. Jen says: “The drug isn’t worth it. It’s better to save 200 animals for sure than risk saving none.” Joe says: “I think we should use the drug. Even if it’s risky, that’s the only way we have a chance of losing no animals at all. Taking the risk is better than losing 400 animals for sure.” Draw a graph explaining how the two can come to such different realizations even though they have value functions with the same shape. The following example is another nice illustration of the phenomenon.