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this is a question about economics. I need a detailed problem solving process.
5Some descriptive features of CEThe expected utility assumption and unanimity about the probabilities allowus to derive some descriptive aspects of a CIProposition 3 Let( P 1 , P 2 ) and T = ( T 1 7 2 ) . ( 1 ) If W 1 = W 2 , then ( a )there is a CE with p = T and ( 6 ) there is no other CE . ( it ) If W . > W 2then any CE has pi/ P 2 < 3 / 2 . ( in ) If W . < W 2 , then any CE has pi / P 2 )Ty / T 2This proposition describes circumstances in which the CE permits theexpatpurchase of what is called fair insurance or fair bets and circumstances inwhich it does not . ( A fair bet means that the pre- outcome value of the bets zero . )
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