My guess at what’s going on here is that you’re intuitively modeling yourself as having a bounded utility function. In which case (letting N denote an upper bound on your utility), no gamble where the probability of the “good” outcome is less than −1/N times the utility of the “bad” outcome could ever be worth taking. Or, translated into plain English: there are some risks such that no reward could make them worth it—which, you’ll note, is a constraint on rewards.
That’s my question for you! I was attempting to explain the intuition that generated these remarks of yours:
The risk for doing it is also really high, but… the bayesian utility function will evaluate it as acceptable because of the [extraordinarily large] reward involved. On paper, this works out...But in practice most people consider this a very bad course of action
My guess at what’s going on here is that you’re intuitively modeling yourself as having a bounded utility function. In which case (letting N denote an upper bound on your utility), no gamble where the probability of the “good” outcome is less than −1/N times the utility of the “bad” outcome could ever be worth taking. Or, translated into plain English: there are some risks such that no reward could make them worth it—which, you’ll note, is a constraint on rewards.
I’m not sure I understand. Why put a constraint on the reward, and even if you do, why pick some arbitrary value?
That’s my question for you! I was attempting to explain the intuition that generated these remarks of yours: