Halevy, Yoram (contributor) - 2001 - [Elektronische Ressource]
frailty, and updates her belief through survival. It
is shown that the resulting choice pattern supports the empirical and ex …
the second choice problem. Assume that the hazard rate per month is 0.1%
(and known to the subject). The two alternatives … translate into a choice
between two prospects:
� ($100,1) or ($110,99.9%;$0,0.1%)
� ($100,97.63%;$0,2.37%) or ($110 …