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fool comments on The Ellsberg paradox and money pumps - Less Wrong
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If money has logarithmic value to you, you are not risk neutral, the way I understand the term. How are you using the term?
Hmm. I think you're right: I've never connected the terms in that way, using "risk-neutral" in tems of utility rather than money. Looking at it more closely, it appears it's more commonly used for money, which would be risk-seeking in terms of utility, and probably non-optimal. (note: I also recognize that most people, including me, over-estimate the decline massively, and for small wagers it should be very close to linear).
The standard meaning of “risk-{adverse, neutral, seeking} in terms of X”, AFAICT, is that your utility is a {concave downward, linear, concave upward} function of X, and hence you cannot be risk-adverse or risk-seeking in terms of utility (assuming the von Neumann-Morgenstern axioms).