金融经济学习题答案.pdfVIP

Exp ected Utility Theory Homework solutions Ref HL Ch Ingersoll Ch Homework By construction Finite case proven in the text b o ok Consider only the countably innite case there is one to one mapping b etween the elements and the natural series of numb ers Index all the elements from to Dene V
Dene
 if 
V
 if 
  if
 Thus we have dened a value function for the rst two element Supp ose we have dened a value function for the rst n element we can dene the value fucntion for the n element as follows Let N denote the set of f ng If n 
i for all i N Dene V n 
sup V i i N If i n 
for all i N Dene V n 
inf V i i N Otherwise dene m inf V i N n i i n 
m
sup V i N n i i n 
and V n 
m m
n n The value function dened is consistent with the preference relation Sucient condition is easy and omitted Problem it is clear that is a preference relation We know how to use a dictionary First x
can not b e larger than y
This causes a contradiction Similarly x
can not b e less than y
This also causes a contradiction Therefore x
y
x y can b e proved similarly Supp ose there exist such a set Y For any x we have x x we must have an element of Y y such