New answers tagged investing
This is a basic utility exercise. I would guess the additional assumption you are missing to solve the exercise is that the player would be willing to accept the fair game but nothing worse. To make this a fair game, the maximal amount which could be paid to enter the game, would result in zero expected loss of utility (nobody would accept anything worse). ...
If there is not a entry fee, I cannot lose money for at worst, I win 0USD.
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