Then expected utility is (X)(20) - (1-X)(2) = 20x - (2 − 2X) = 22X − 2. it’s positive expected utility to enter the auction.
Then expected utility is (X)(20) - (1-X)(2) = 20x - (2 − 2X) = 22X − 2.
it’s positive expected utility to enter the auction.
Nitpick: Expected value, not utility.
It is standard to call an expected value an “expected utility” when the values in question are utilities.
Correct but irrelevant, as Yvain was discussing dollars.
You’re right; I was identifying the values with utilities for the purposes of the scenario, which I only now see was precisely what VincentYu was criticizing.
Nitpick: Expected value, not utility.
It is standard to call an expected value an “expected utility” when the values in question are utilities.
Correct but irrelevant, as Yvain was discussing dollars.
You’re right; I was identifying the values with utilities for the purposes of the scenario, which I only now see was precisely what VincentYu was criticizing.