Recall that the way we rationalized away money risk aversion was to claim that money units become less useful as our wealth increases. Is there some rationalization which shows that utility units become less pleasing as happiness increases.
The independence axiom says “no”—I think—though it is “just” an axiom.
My comments about independence were triggered by:
The independence axiom says “no”—I think—though it is “just” an axiom.