Question V Risk aversion is not about present vs future but about you being rich or poor Risk preferring doesn't mean you like risk That you would choose to flip a coin,heads you lose a thousand dollar,tails you don't. Only that you like a coin flip where heads you lose a thousand,tails you win a thousand. What do risk averse,risk neutral,and risk preferring mean ·n money ·n life ·in grades Risk aversion in money is due to declining marginal utility of income And that does not imply declining marginal utility of years or grades Ex ante ex post question:Deaths vs Dents One major problem with ex post is having to impose large punishments If the only result is denting,that is unnecessary So a pure ex post system makes much more sense than if accidents killQuestion V • Risk aversion is not about present vs future but about you being rich or poor • Risk preferring doesn’t mean you like risk • That you would choose to flip a coin, heads you lose a thousand dollar, tails you don’t. • Only that you like a coin flip where heads you lose a thousand, tails you win a thousand. • What do risk averse, risk neutral, and risk preferring mean • In money • In life • In grades • Risk aversion in money is due to declining marginal utility of income • And that does not imply declining marginal utility of years or grades • Ex ante ex post question: Deaths vs Dents • One major problem with ex post is having to impose large punishments • If the only result is denting, that is unnecessary • So a pure ex post system makes much more sense than if accidents kill