題組內容

2. With R1 lottery, the chances to earn 4000 and 10 are 80% and 20% respectively.

With S1 lottery, you definitely will receive 3000.

When people choose between R1 and S1, the majority choose S1.

With R2 lottery, the chances to earn 4000 and 10 are 20% and 80% respectively.

With S2 lottery, the chances to earn 3000 and 10 are 25% and 75% respectively.

When people choose between R2 and S2, the majority choose R2.

(1) Use the expected utility theory to show that people are being inconsistent. (9%)