Recent content by coldway

  1. C

    Please help me question on the game theory, thanks

    is frist part second derivtive??differential
  2. C

    Please help me question on the game theory, thanks

    for the part2, is the answer u(w)=ln(0.6*1-0.4*1)=ln0.2, but i am not sure about it
  3. C

    Please help me question on the game theory, thanks

    This involves the question of marginal utility, ln (w) is concave, meaning that derivatives along the x-axis positive direction is decreasing, which means that the marginal utility of winning is less than the marginal loss of output,so far i just up to here, i still looking for futhermore help...
  4. C

    Please help me question on the game theory, thanks

    A person has a utility function defined over her wealth given by u(w)=ln(w). Her initial wealth is $2 and she faces a risky prospect in which she will lose $1 with probability 0.4 and gain $1 with probability 0.6. (i) Show that this person is risk averse by demonstrating that her utility...
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