When the expected utility approach and the expected value approach applied to monetary payoffs result in the same action,these are characteristics generally associated with a risk-neutral decision maker.

Question

Quizplus · Accepted Answer

When the expected utility approach and the expected value approach lead to the same action, it suggests that the decision maker is not factoring in any personal risk preferences and is therefore considered risk-neutral.

When the Expected Utility Approach and the Expected Value Approach