Hint | Answer |

__ axiom of EUT: any two lotteries can be compared | |

Rabin critique of concave utility: If an EU maximiser rejects a 50/50 between $100 loss and $_ gain then they must reject 50/50 between $_ loss and $_ gain | |

Pioneers subjective choice theory | |

Demonstrated screening: where the uninformed takes action to improve what they know | |

__ axiom of EUT: If A>B>C then A>C | |

With risk, we can __ probabilities, with uncertainty we are __ | |

Test of industry boundaries - if a small but significant price increase would be profitable then substitutes are not a barrier to monopolism | |

Found consumer choices (in experiments) that systematically undermined EUT | |

Shallow loss function? Use a _ | |

When a group of people agree to share in the outcomes of multiple risky projects | |

Rothschild-Stiglitz separating equilibrium does not exist if proportion of __ risk types is too high | |

In an infinite game, a mixed Bertrand strategy can even produce higher profits than Cournot | |

Decisions around uncertainty are influenced by framing | |

What makes people happy is relative prosperity - undermines EUT | |

When the outcomes of a risky project are shared amongst people | |

e.g. congestion, agglomeration | |

Developed the expected utility model | |

__ absolute risk aversion reflects the fact that gambles over say $100 should become more appealing as we get richer | |

Deal or no Deal shows consumers have path dependent risk attitudes | |

Method of finding out marginal benefits of public gods | |

A higher number of firms in a market __ the chance of collusion | |

__ axiom of EUT: If A>B>C then there must be some weighted average of A and C that is equally preferable to B | |

Showed that it is unrealistic to expect the same utility function to be appropriate for all levels of wealth | |

The same lottery might be preferred if the results can be known now rather than later to reduce __ | |