The fact that we think of utilities as cardinal numbers doesn’t mean we assign any meaning to ratios of utilities.
Kindly says the ratios do have relevance to considering bets or risks.
But it seemed that you were trying to say that a person with a logarithmic utility function assesses $10^9 as having twice the utility of $50k.
Yes, I think I see my error now, but I think the force of the numbers is clear: log utility in money may be more extreme than most people would intuitively expect.
Kindly says the ratios do have relevance to considering bets or risks.
Yes, I think I see my error now, but I think the force of the numbers is clear: log utility in money may be more extreme than most people would intuitively expect.