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Receiving more points yields more but diminishing marginal utility g x0 x 0 and g x0 x 0 if x0 x and g x0 x g x0 x 0 if x x. 7 and 5. 6. Thus x x. p2 yu2 x c x h x x 2 x y c x2 x y p p2 2u x y c x2 x y f r x g r x h x x if x 1 consume. 6 and 5. 7 yields r 2 u x2 1signup f r x g r x p2 yu2 c x f r x f r x g r x p2 yu2 c x x2 1signup f if 0 Note that x r is positive when r x and negative when r x due to diminishing sensitivity to gains and losses. Since x 1...
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