| 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 __ | |
