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Results tagged with utility
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user 13313
Utility, or usefulness, is the (perceived) ability of something to satisfy needs or wants.
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Proof: Risk averse; Certainty Equivalent smaller than expected value
I would like to show for a randomly distributed variable $x$ with CDF $F(\cdot)$ , given a Bernoulli utility function $u(x)$ the following property holds:
The certainty equivalent, $CE(\cdot)$, is smaller …
