That’s just plain false. Risk-aversion is a valid preference, and can be included as a term in a utility function (at slight risk of circularity, but that’s not really a problem).
ETA: well, the stated units were utils, so risk-aversion should be included, so I think you’re correct.
That’s just plain false. Risk-aversion is a valid preference, and can be included as a term in a utility function (at slight risk of circularity, but that’s not really a problem).
ETA: well, the stated units were utils, so risk-aversion should be included, so I think you’re correct.