1/W is totally fine! If that was your utility function you’d reject the bet at low wealth and accept it at high wealth.
The exponentially decreasing thing is just a bound—on the domain where you reject the bet your marginal utility of money will be decreasing faster than C⋅e−0.0013w.
1/W is totally fine! If that was your utility function you’d reject the bet at low wealth and accept it at high wealth.
The exponentially decreasing thing is just a bound—on the domain where you reject the bet your marginal utility of money will be decreasing faster than C⋅e−0.0013w.
Sure, but that does imply that your marginal utility of money decreases that fast outside that domain.