As far as I can tell, the fact that you only ever control a very small proportion of the total wealth in the universe isn’t something we need to consider here.
No matter what your wealth is, someone with log utility will treat a prospect of doubling their money to be exactly as good as it would be bad to have their wealth cut in half, right?
I don’t know—I don’t have a good sense of what “terminal values” mean for humans. But I suspect it does matter—for a logarithmic utility curve, figuring out the change in utility for a given delta in resources depends entirely on the proportion of the total that the given delta represents.
As far as I can tell, the fact that you only ever control a very small proportion of the total wealth in the universe isn’t something we need to consider here.
No matter what your wealth is, someone with log utility will treat a prospect of doubling their money to be exactly as good as it would be bad to have their wealth cut in half, right?
I don’t know—I don’t have a good sense of what “terminal values” mean for humans. But I suspect it does matter—for a logarithmic utility curve, figuring out the change in utility for a given delta in resources depends entirely on the proportion of the total that the given delta represents.