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DanielVarga comments on Example of poor decision making under pressure (from game show) - Less Wrong
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Looking at some much more advanced related papers, I am now sure that it is well known. But I'd still love to see some reference, be it a paper or a textbook. Could you please help me with this?
Maybe Bernoulli's 1738 paper on the St Petersburg paradox, where he suggested that utility should be the log of wealth.
Really? That's cool. How about the slightly more general version that I stated down-thread? I hope at least that one would have been news to Bernoulli, entropy hadn't been invented yet.