Glad this formulation is useful! I do indeed think that people often behave like you describe, without generally losing huge sums of cash.
However, the conclusion of my post is that it is irational to deviate from expected utility for small sums. Agregating every small decision you make will give you expected utility.
Glad this formulation is useful! I do indeed think that people often behave like you describe, without generally losing huge sums of cash.
However, the conclusion of my post is that it is irational to deviate from expected utility for small sums. Agregating every small decision you make will give you expected utility.