dvasya comments on Terminal Bias - Less Wrong

18 [deleted] 30 January 2012 09:03PM

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Comment author: dvasya 31 January 2012 04:37:49AM 0 points [-]

Yes, the agent should - given the defined utility function and that the agent is rational. If, however, the agent is irrational and prone to risk aversion, it will consistently prefer the sure deal to the bet, and therefore be willing to pay a finite cost for replacing the bet with the sure deal, hence losing utility.