The solution is that a loss of five dollars only incurs a loss of Epsilon utils in this situation, so you will indeed pay up if you do the expected utility calculation (although I’m not sure I agree that you would want to).
The solution is that a loss of five dollars only incurs a loss of Epsilon utils in this situation, so you will indeed pay up if you do the expected utility calculation (although I’m not sure I agree that you would want to).