Two risky gambles were proposed at the beginning of the


Question: Two risky gambles were proposed at the beginning of the chapter:

Game 1: Win $30 with probability 0:5

Lose $1 with probability 0:5

Game 2: Win $2,000 with probability 0:5

Lose $1,900 with probability 0:5

Many of us would probably pay to play Game 1 but would have to be paid to participate in Game 2. Is this true for you? How much would you pay (or have to be paid) to take part in either game?

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Microeconomics: Two risky gambles were proposed at the beginning of the
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