The point is that we may have utility functions where u(p1A+p2B) != p1u(A)+p2u(B).
I am well aware. That’s only the case for linear, i.e. ‘risk neutral’, utility functions.
The thing is, utility is defined as the thing you are risk neutral with respect to. If you’re not risk neutral with respect to it, then it’s not utility.
I am well aware. That’s only the case for linear, i.e. ‘risk neutral’, utility functions.
The thing is, utility is defined as the thing you are risk neutral with respect to. If you’re not risk neutral with respect to it, then it’s not utility.