In utility analysis, a utility curve that shows a rapid increase in utility for initial amounts of money followed by a gradual leveling off for larger amounts of money is appropriate for a risk-seeking decision maker.

Question

Quizplus · Accepted Answer

The description of the utility curve is a risk averter's curve, not a risk seeker's curve, which would have a slow increase in utility for initial amounts of money followed by a rapid increase.

In Utility Analysis, a Utility Curve That Shows a Rapid