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9eB1 comments on Participation in the LW Community Associated with Less Bias - Less Wrong
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I was thinking that wealthier people would have a lower level of utility associated with the additional marginal dollars they could get from waiting, so transaction costs and other disutilities would override the utility offered by having a greater number of dollars. I said "actually" only because this thinking is sort of in line with what I was discussing in my first paragraph.
I would think that if our hypothetical wealthy person was rich enough to not care all that much about an additional $20 million, they wouldn't care enough about the initial $55 million to pick the short-term option that netted them less money.
If the utility of the dollars goes down, doesn't the utility loss from transaction costs also go down? (Because if you care less about the money you can worry less about it. Extreme case: If I offer to give you $0 in a week, you don't need to waste any time or effort keeping track of when I'm supposed to pay you.)