As Thom indicates, this is exactly what I was talking about: ten times the stuff you own, rather than ten times the utility. Since utility is just a representation of your preferences, the 1 in 10 payoff would only have ten times the utility of your current endowment if you would be willing to accept this gamble.
As Thom indicates, this is exactly what I was talking about: ten times the stuff you own, rather than ten times the utility. Since utility is just a representation of your preferences, the 1 in 10 payoff would only have ten times the utility of your current endowment if you would be willing to accept this gamble.