= 27d567bc2d48d9f40e9ccc20ea370b15)
gwern comments on Open Thread for February 11 - 17 - Less Wrong Discussion
You are viewing a comment permalink. View the original post to see all comments and the full post content.
= 783df68a0f980790206b9ea87794c5b6)
Loading…= b715d02e85f7b3b4ae65ca3d3e450868)
Subscribe to RSS Feed
Powered by Reddit
= f037147d6e6c911a85753b9abdedda8d)
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (325)
I participated in an economics experiment a few days ago, and one of the tasks was as follows. Choose one of the following gambles where each outcome has 50% probability Option 1: $4 definitely Option 2: $6 or $3 Option 3: $8 or $2 Option 4: $10 or $1 Option 5: $12 or $0
I choose option 5 as it has the highest expected value. Asymptotically this is the best option but for a single trial, is it still the best option?
Technically, it depends on your utility function. However, even without knowing your utility function, I can say that for such a low amount of money, your utility function is very close to linear, and option 5 is the best.
More info: marginal utility