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Viliam_Bur comments on Is risk aversion really irrational ? - Less Wrong
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Summary of the article:
Whenever you take a risk in real life the outcome will take time to manifest. Until then some of the desicions you will have to face might depend on that outcome which will increase the computational power needed to calculate expected utiltiy and make the desicion. Since our computational power is limited it might be rational to keep these complications at a minimum, therfore risk aversion.
There is one important detail about the computational power. Risk today increases computational power for evaluating tomorrow's risk. But also the possibility of risks tomorrow becoming entangled with today's decision increases computational power for evaluating today's risk.
The real utility of today's risk is probably smaller than it seems when we evaluate the risk as an isolated event. Risk aversion may be a heuristic to improve our estimates.