Answered: 2- Show which of the following utility…

2- Show which of the following utility functions exhibit decreasing risk aversion: a- U(W) = (W + a)³, a>0, 00 d- U(W) = W³

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2- Show which of the following utility functions exhibit decreasing risk aversion:
a- U (W) = (W + a)³, a≥0, 0<B<1
b- U(W) = W
c- U(W) = n(W + a), a>0
-
d- U(W) = W³

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