There’s no need to renormalise: any outcome on the blue line is a probabilistic mixture between the (0,1) and (0.95,0.95) choices (to use the genuine utilities of these outcomes). This is better for y than the pure (0.95,0.95) option.
Oh, I see. That’s why the straight lines are significant: they show that no mixture involving the (.6,.6) point is optimal. Thanks for explaining.
There’s no need to renormalise: any outcome on the blue line is a probabilistic mixture between the (0,1) and (0.95,0.95) choices (to use the genuine utilities of these outcomes). This is better for y than the pure (0.95,0.95) option.
Oh, I see. That’s why the straight lines are significant: they show that no mixture involving the (.6,.6) point is optimal. Thanks for explaining.