Preferences and Subjective Probabilities
Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)
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This chapter explains the relationship between preferences and subjective probabilities, and it shows how to model the relationship between the utility function, state-contingent goods, preferences and probabilities.
KeywordsIndifference curves Certainty line Probability line Safety line Subjective probability Leontief utility function Certainty equivalent Risk premium
© Svend Rasmussen 2011