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How do you define "correct results"? Talking about portfolio selection, for example, the EE - a.k.a. U=log(wealth) - solution may be the "correct solution" to
by kgwgk 6y ago
How do you define "correct results"?
Talking about portfolio selection, for example, the EE - a.k.a. U=log(wealth) - solution may be the "correct solution" to the "we never spend a dollar problem and we have an infinite horizon" problem.
But EE cannot get any results, correct or otherwise, for many other problems that are much more interesting where EUT can be applied.
Like investment decisions when your horizon is not infinite and you intend to use the money at some point.