Assignment Help - homework help

  Axioms of Expected Utility

The Axioms of Expected Utility:

• Preferences over possible outcomes are complete, reflexive, and transitive.

• Compound lotteries is able to be reduced to simple lotteries.

• Continuity: For each outcome xi between x1and xn , the consumer can name a probability, pi, such that s/he is indifferent between getting xi with certainty and playing a lottery (which involves getting xn with probability pi and x1 with probability (1− pi)). We utter that xi is the certainty equal to the lottery ~xi where:

~x= (xn with pi and x1 with (1−pi)).

• Substitutability. The lottery~xi is able to forever be substituted for its certainty equivalent xi in any other lottery.

• Monotonicity. If two lotteries with the similar two alternatives each differ only in probabilities then the lottery that gives elevated probability to the most-preferred alternative is preferred to the other lottery.

If preferences over lotteries satisfy above axioms then we is able to assign numbers U(xi) which is associated with the outcomes xi such that if we compare two lotteries L and L′ which offer probabilities (p1, L, pn) and (p1, ,pn) ′L′ of obtaining those outcomes L will be preferred to L′ if and only if:

1258_monotonocity.jpg

This signifies that the rank order by expected utilities reflects the rank order of preference over the lotteries and that the rational individual will choose amongst risky alternatives as if s/he is maximizing expected utility.

Latest technology based Microeconomics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Microeconomics help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Microeconomics, project ideas and tutorials. We provide email based Microeconomics help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Microeconomics Homework help and assignment help services. They use their experience, as they have solved thousands of the Microeconomics assignments, which may help you to solve your complex issues of Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Home | Company Overview | Services | Discover Q&A | Sitemap | Contact Us | T & C | Refund Policy | Copyright Policy | Blog | Q&A | Directory

©TutorsGlobe All rights reserved 2022-2023.