Excellently put, I think that sums up our disagreement very accurately. I’m not sure risk aversion couldn’t be expressed as an irreducible term in a utility function, though. I suppose it would be more of a trait of the utility function, such as all probabilities are raised to a power greater than one, or something.
Excellently put, I think that sums up our disagreement very accurately. I’m not sure risk aversion couldn’t be expressed as an irreducible term in a utility function, though. I suppose it would be more of a trait of the utility function, such as all probabilities are raised to a power greater than one, or something.