Now assume that the problem is to maxImize n that case, individuals maximize (1-丌)U(Y-pl,0)+丌U(Y-pl,L Where l indicates some sort of loss In this case, the first order condition is 1-Tpui(r -pl,0)=pui(r-pl,lNow assume that the problem is to maximize: In that case, individuals maximize: 1  UY  pI, 0  UY  pI,L Where L indicates some sort of loss: In this case, the first order condition is: 1  pU1Y  pI, 0  pU1Y  pI,L