PHIL 105 Lecture Notes - Lecture 13: Season Ticket, Expected Utility Hypothesis
5 Feb 2015
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Suppose you have , one is to buy a bond, and one is to invest in a stock. Expected utility = value x probability - cost. Season tickets best case if we go 3 . 33/show best case if we go to all 5 shows /show. Expected utility of only 3 shows: 1/3 x . 33=. 11 expected of > 3 shows: 2/3 x =. 3333 total of both is . 22. Buying a season pass encourages you to go to the shows. Whether to go to school in vancouver or toronto. Certain that if i go to school in van, costs(rent, tuition ) is less. If i go to toronto, cost is high. If state i occurs, we want b, if sate ii occurs, we still want b. If state i occurs we want a, but if state ii occurs, we cant b. So we want satisfactory action: avoids unacceptable outcome.
