“I’ll give you £1 now and you give me £2 in a week”. Will she accept?
In the universe where she’s allowed to make the 60⁄40 doubled bet at least once a week, it seems like she’s always say yes? I’m not seeing the universe in which she’d say no, unless she’s using a non-zero discount rate that wasn’t discussed here.
| I’m not sure I’ve ever seen a treatment of utility functions that deals with this problem?
In the universe where she’s allowed to make the 60⁄40 doubled bet at least once a week, it seems like she’s always say yes? I’m not seeing the universe in which she’d say no, unless she’s using a non-zero discount rate that wasn’t discussed here.
| I’m not sure I’ve ever seen a treatment of utility functions that deals with this problem?
Isn’t this just discount rates?