On the other hand with chemical b both groups are treated


A decision maker who prefers Chemical B might be said to be sensitive to equity between the two groups. The eventual outcome with Chemical A is not equitable; one group is better off than the other. On the other hand, with Chemical B, both groups are treated the same. Let anddenote the expected increase in the number of deaths in Groups 1 and 2, respectively, and denote a decision maker's utility function as

U(xy= kX  UX(x) + kY  UY(y) + (1 - kX  - kY) UX(x)  UY(y)

What can you say about the value of (1 - k- kY)? Are and complements or substitutes?

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Basic Statistics: On the other hand with chemical b both groups are treated
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