My utility function is bounded. This means that your assumption “that utility can reliably be increased and decreased by specific quantities” is sometimes false for my function. It will depend on the details but in some cases this means that I should use the Kelly strategy even though I am optimizing for a utility function.
The fact that the function is bounded also explains cousin it’s point that “it’s very hard to imagine a situation that would correspond to high utility in human decision-making.”
My utility function is bounded. This means that your assumption “that utility can reliably be increased and decreased by specific quantities” is sometimes false for my function. It will depend on the details but in some cases this means that I should use the Kelly strategy even though I am optimizing for a utility function.
The fact that the function is bounded also explains cousin it’s point that “it’s very hard to imagine a situation that would correspond to high utility in human decision-making.”