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dvasya comments on Terminal Bias - Less Wrong
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I'm not sure I understand why. The lottery has an expected utility of (sqrt(9)+sqrt(25))/2=4, so shouldn't the agent express indifference between the lottery and 16 guaranteed paperclips? This behavior alone seems risk-averse to me, given that the lottery produces an expected (9+25)/2=17 paperclips.
Sidenote, is there a way to use LaTeX on here?
Sorry, I made a mistake in the example, it's of course 16 not 15. Edited to correct.