VNM doesn't offer any "formulation of rational behavior". VNM says that a function with a particular set of properties must exist and relies on assumptions that do not necessarily hold in real life.

I also don't think that a utility function that can condense the risk preferences into a single scalar is likely to be accurate enough for practical purposes.

Can you by chance pin down your disagreement to a particular axiom? You're modus tollensing where I expected you would modus ponens.

Open thread, Apr. 18 - Apr. 24, 2016

by MrMind 1 min read18th Apr 2016176 comments


If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

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