Vaniver comments on Is risk aversion really irrational ? - Less Wrong

41 Post author: kilobug 31 January 2012 08:34PM

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Comment author: Vaniver 01 February 2012 04:46:01PM 1 point [-]

The point is that we may have utility functions where u(p1A+p2B) != p1u(A)+p2u(B).

I am well aware. That's only the case for linear, i.e. 'risk neutral', utility functions.

The thing is, utility is defined as the thing you are risk neutral with respect to. If you're not risk neutral with respect to it, then it's not utility.