Q1 and Q2

Expected Values as functions of interest rates 'i'
i (Interest Rate) E(Ys) E(Yr) E(piS) E(piR) E(Pi|Asy Info)
0 Figure 1 Figure 2
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3
Ys Income to the safe farmer
Yr Income to the risky farmer
piS Profit with safe farmer
piR Profit with risky farmer
Pi|Asy Info Profit under asymmetric info