
Ep 130: Steven Pinker’s ”Rationality” Ch 6 ”Risk and Reward” (Rational Choice & Expected Utility). Analysis.
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A Thousand Dollars for Sure, or a 50 50 Chance of Winning Two Thousand Dollars
The utility of two thousand dollars is less than twice the utility of one thousand dollars. This doesn't mean the are flouting rational choice theory, it just means that utility is not the same as value in dollars. People's ratings of their satisfaction in their choice of gamboles point to the same bent over curve relating money and utility. So surely different people will have different ways in which to assess a situation like this? Againb falling back onto kind of games of chance. These these abstract, non real situations don't actually have any alogue with a real life decision that people make.
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