steven comments on The Allais Paradox - Less Wrong

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

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (133)

Sort By: Old

You are viewing a single comment's thread.

Comment author: steven 20 January 2008 12:29:28AM 0 points [-]

Caledonian, if utility is any function defined on amounts of money, then if you are maximizing expected utility, you *cannot* fall prey to the Allais paradox. You can define a utility function on gambles that is *not* the expected value of a utility function on amounts of money, but then that function is not *expected* utility, and you're outside of normal models of risk aversion, and you're violating rationality axioms like the one Eliezer gave in the OP.