Wolfers, Justin (contributor); Zitzewitz, Eric (contributor) - 2006
, whose “flat tax” would have eliminated the tax
exemption for municipal bond interest.
Moving beyond ex-post studies of … initial wealth, y, who must choose how many prediction market securities, x, to
purchase at a price, π, given that they … believe that the probability of winning their bet
is q:
*
[(1)](1)[ ]
:
(1 )
jj j j j
{x}
j
j
Max EU =q Log y x q Log y x …