Open thread, Jan. 26 - Feb. 1, 2015

Gondolinian

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In principle, absolutely.

In practice, trying to fit many observed instances to to a curved utility-money curve will result in an implausibly sharp curve. So unless the TV purchase amounts to a large chunk of your income, this probably won't match the behavior.

Rabin has a nice example of this for risk aversion, showing that someone who wasn't happy taking a -100:110 coin flip due to a utility-money curve would have an irrationally large risk aversion for larger amounts.