I find this example interesting but very weird. The couple is determining fairness by using “probability mass of happiness” as the unit of account. But it seems very natural to me to go one step further and adjust for the actual outcomes, investing more resources into the sub-agent that has worse luck.
I don’t know if this is technically doable (I foresee complications with asymmetric utility functions of the two sub-agents, where one is harder to satisfy than the other, or even just has more variance in outcomes), but I think such an adjustment should recover the VNM independence condition.
I find this example interesting but very weird. The couple is determining fairness by using “probability mass of happiness” as the unit of account. But it seems very natural to me to go one step further and adjust for the actual outcomes, investing more resources into the sub-agent that has worse luck.
I don’t know if this is technically doable (I foresee complications with asymmetric utility functions of the two sub-agents, where one is harder to satisfy than the other, or even just has more variance in outcomes), but I think such an adjustment should recover the VNM independence condition.