Vaniver comments on The Allais Paradox - Less Wrong

19 Post author: Eliezer_Yudkowsky 19 January 2008 03:05AM

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Comment author: Vaniver 28 October 2011 04:26:49AM 3 points [-]

He makes it clearer in comments.

What Caledonian is discussing is the certainty effect- essentially, having a term in your utility function for not having to multiply probabilities to get an expected value. That's different from risk aversion, which is just a statement that the utility function is concave.