Upvoted. In my opinion, the literature on risk-averse agents is logically consistent, and being risk-averse does not imply irrationality. I agree with Vaniver’s comments. Also, humans are, on average*, risk averse.
*For example, with respect to markets, ‘market clearing’ average in a Walrasian auction sense.
Upvoted. In my opinion, the literature on risk-averse agents is logically consistent, and being risk-averse does not imply irrationality. I agree with Vaniver’s comments. Also, humans are, on average*, risk averse.
*For example, with respect to markets, ‘market clearing’ average in a Walrasian auction sense.