eath</p></li>
<li><p>ex. <em>QALY</em> - quality-adjusted life year</p></li>
</ul>
</li>
<li><p>risk</p>
<ul>
<li><p>agents exhibits <em>monotonic preference</em> for more money</p></li>
<li><p>gambling has expected monetary value = EMV</p></li>
<li><p><em>risk averse</em> = when utility of money is sublinear</p>
<ul>
<li><p><strong>risk premium</strong> = value agent will accept in lieu of lottery = <em>certainty equivalent</em>= <em>insurance premium</em></p></li>
</ul>
</li>
<li><p><em>risk-neutral</em> 