MWG Definition 6.B.2 Given K simple lotteries Lk=(pI..PN) k= 1, 2, ...,K, and probabilities ak >0 with ∑αk=1, the compound/ ottery LI,... LK;a1,.ax)is the risky alternative that yields the simple lottery Lk with probability ak for k=1,.K For any compound lottery, LI,... LK;al..ax), the corresponding reduced lottery is the simple lottery k=∑a∑ap2,∑MWG Definition 6.B.2: Given K simple lotteries Lk  p1 k ,...pN k , k  1, 2, . . . ,K, and probabilities k  0 with k k  1, the compound lottery L1,...LK;1,...K  is the risky alternative that yields the simple lottery Lk with probability k for k  1, . . .K. For any compound lottery, L1,...LK;1,...K  , the corresponding reduced lottery is the simple lottery: Lk   k kp1 k , k kp2 k ,.. k kpN k