Phrasing this in terms of utility functions is misleading. I suggest thinking in terms of a Schelling Point strategy, as David Friedman describes in his account of why property rights exist. Most utility functions will generate strategies such as this under many conditions.
Phrasing this in terms of utility functions is misleading. I suggest thinking in terms of a Schelling Point strategy, as David Friedman describes in his account of why property rights exist. Most utility functions will generate strategies such as this under many conditions.
Could you explain the rational justification for loss aversion ? (If possible, write a top-level post on this.)