You can elicit probabilities from risk averse agents by taking the limit of arbitrarily small bets. There is an analogy with electro-magnetism, where people who want to give a positivist account of the electro-magnetic field say that it is defined by its effect on charged particles; but since the charges affect the field, one talks of an infinitesimal “test charge.”
You can elicit probabilities from risk averse agents by taking the limit of arbitrarily small bets. There is an analogy with electro-magnetism, where people who want to give a positivist account of the electro-magnetic field say that it is defined by its effect on charged particles; but since the charges affect the field, one talks of an infinitesimal “test charge.”