Suppose Paul’s preferences over his income can be represented by a
NMUF µ:;XX where X is Paul’s income in 1000 euros. In his current job he earns 50,000 euro/year. He is offered a job that pays him 64000euro or 36000 with equal probability. Is Paul willing to change job?
To determine if Paul is willing to change jobs, we need to compare the utility he receives from his current job with the utility he would receive from the new job offers.
Let's assume that "NMUF µ:;XX" stands for Non-Monetary Utility Function, which represents Paul's preferences over his income. However, without specific information about the form of this utility function, we cannot make concrete conclusions about his decision. The utility function could represent various factors like risk aversion, diminishing marginal utility of income, or personal preferences.
Hence, we need more information about Paul's utility function or his specific preferences in order to determine if he is willing to change jobs.