Hint | Answer |

Even if EUT is criticised, it might be the best description of __ decision making | |

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 | |

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

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

Investment by an incumbent changes the rules of (market entry) game | |

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

Rabin concludes that we should reject EUT for __ stakes | |

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

If people adhere to rationality (in _ choice theory) over _ probabilities then expected utility analysis remains valid. | |

Any feasible payoff pair giving each player at least her stage game eqn payoff can be supported as SPE if delta is high enough | |

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

An agent is risk averse if and only if their utility of wealth curve is c__ | |

A set of strategies where each is the best response to the other | |

Firms are endowed with a tradeable carbon license that diminishes by __% every year | |

Subjective choice theory requires a known number of _ of the world | |

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

(2004) efficiency gains can offset the costs of lower competition | |

A set of prices where (amongst other things) supply = demand for every good. | |

Leniency programs __ the chance of collusion | |

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

Mergers have __ and __ effects on competition. | |

In carbon policy, a __ is preferred to a __ because of the steep loss function | |

_ Paradox: Flip a coin as many times until tails - receive 2^no.ofheads. Expected value is infinite but few would pay more than around 25 dollars. | |

A higher real interest rate __ the chance of collusion | |

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