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no to all, because any risk is bad, because marginal utility is decreasing.
by ouid 10y ago
no to all, because any risk is bad, because marginal utility is decreasing.
- ucaetano 10y agoIt's the other way around, "any risk is bad" and "marginal utility is decreasing" are conclusions that you reach from your own function, not that drive your function. * Would you give $1 for a 1% chance of winning $100? * Would you give $1 for a 1.1% chance of winning $100? * Would you give $1 for a 1.2% chance of winning $100? . . . * Would you give $1 for a 10% chance of winning $100?