These results hold only if you assume risk aversion is entirely explained by a concave utility function, if you don’t assume that then the surprising constraints on your preferences don’t apply
IIRC that’s the whole point of the paper—not that utility functions are in fact constrained in this way (they’re not), but if you assume risk aversion can only come from diminishing maginal value of money (as many economists do), then you end up in weird places so maybe you should rethink that
These results hold only if you assume risk aversion is entirely explained by a concave utility function, if you don’t assume that then the surprising constraints on your preferences don’t apply
IIRC that’s the whole point of the paper—not that utility functions are in fact constrained in this way (they’re not), but if you assume risk aversion can only come from diminishing maginal value of money (as many economists do), then you end up in weird places so maybe you should rethink that