Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

تمرين 18

A mathematically "fair bet" is one in which a gambler bets, say $100, for a 10 percent chance to win $1000 ($100 =.10 x 1000). Assuming diminishing marginal utility of dollars, explain why this is not a fair bet in terms of utility. Why is it even less fair a bet when the "house" takes a cut of each dollar bet So is gambling irrational