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I don't know how that article is written without mentioning utility theory in economics and the concept of diminishing marginal utility of money and the risk av
by k2enemy 4y ago
I don't know how that article is written without mentioning utility theory in economics and the concept of diminishing marginal utility of money and the risk aversion it implies. No need to even bring in behavioral economics.
https://en.wikipedia.org/wiki/Risk_aversion https://en.wikipedia.org/wiki/Risk_aversion
- tehsauce 4y agoAgreed. The article claims the scenario is “mathematics vs circumstance”, but really it’s really naive math vs math which takes into account the nonlinear utility.