2 Decision Theory

Thorsten Hens; Marc Oliver Rieger

doi:10.1007/978-3-662-59889-4_2

Solutions to Financial Economics pp 5-9 | Cite as

2 Decision Theory

Authors
Authors and affiliations

Thorsten Hens
Marc Oliver Rieger

Chapter

First Online: 26 October 2019

445 Downloads

Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

Consider the following game: you roll a dice, if you roll a 6, you win 6 million € otherwise you win nothing. You can play only once. Let us assume your expected utility function is given by u(x) =log₁₀x (base 10 logarithm, i.e., log₁₀(10ⁿ) = n) and your initial wealth is 10,000 €.

This is a preview of subscription content, to check access.

Copyright information

Authors and Affiliations

Thorsten Hens
- 1
Marc Oliver Rieger
- 2

1.Department of Banking and FinanceUniversity of ZurichZürichSwitzerland
2.Department of Business AdministrationUniversity of TrierTrierGermany

About this chapter

CrossMark

Cite this chapter as:: Hens T., Rieger M.O. (2019) 2 Decision Theory. In: Solutions to Financial Economics. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-59889-4_2

First Online 26 October 2019
DOI https://doi.org/10.1007/978-3-662-59889-4_2
Publisher Name Springer, Berlin, Heidelberg
Print ISBN 978-3-662-59887-0
Online ISBN 978-3-662-59889-4
eBook Packages Economics and Finance Economics and Finance (R0)

Personalised recommendations

Instant download
Readable on all devices
Own it forever
Local sales tax included if applicable

Buy Physical Book

2 Decision Theory

Abstract

Copyright information

Authors and Affiliations

Personalised recommendations

Cite chapter