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Fwd: [RangeVoting] Re: Kenneth J. Arrow on Utility (Historical investigation of Arrow) II

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  • Juho
    Didn t see this mail (see below) get through yet. Sorry if you will receive some of my mails twice or more often. Some additional maybe helpful comments (I
    Message 1 of 1 , Mar 31, 2008
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      Didn't see this mail (see below) get through yet. Sorry if you will
      receive some of my mails twice or more often.

      Some additional maybe helpful comments (I proposed use of different
      utility functions for losing and getting money few mails back):
      - lose money => utility = -1000 * amount of dollars
      - get money => utility = +1 * amount of dollars
      - in B (with A as an alternative choice) there is a possibility to
      lose the $1M, and there is a possibility to get additional $4M

      Juho



      Begin forwarded message:

      > From: Juho <juho4880@...>
      > Date: March 31, 2008 19:11:52 GMT+03:00
      > To: RangeVoting@yahoogroups.com
      > Subject: Re: [RangeVoting] Re: Kenneth J. Arrow on Utility
      > (Historical investigation of Arrow) II
      >
      > Ok, my simplest short explanation that could explain the general
      > tendency to favour "A>B and D>C" is simply that people hate losing
      > money more than they love getting money.
      >
      > Wouldn't this put the A/B comparison to different position than the
      > C/D comparison? In A vs. B there is a risk of losing money that one
      > already has available and promised. In C vs. D everything is just
      > potential additional incoming money.
      >
      > Juho
      >
      >
      > On Mar 31, 2008, at 1:24 , warren_d_smith31 wrote:
      >
      >> --- In RangeVoting@yahoogroups.com, Juho <juho4880@...> wrote:
      >>>
      >>> I interpret the choice between option A and B so that you already
      >>> more or less have the $1M since you can choose A if you so want.
      >>> Choosing B would mean to you to take a risk of losing that $1M.
      >>>
      >>> From the Darwinian point of view it makes sense to guarantee that
      >>> you will have a pile of nuts in your cave. That will keep you alive
      >>> over the winter. Risking those nuts would be stupid. Extra nuts are
      >>> not that important if you already have a sufficient pile of nuts.
      >>> And
      >>> even if you would still need more nuts risking the pile that you
      >>> already have (or are about to have) could be fatal (becoming
      >>> undernourished during the winter is better than dying during the
      >>> winter). I think the Darwinian survival instincts fit nicely in the
      >>> framework of giving high value to the certain availability of some
      >>> goods.
      >>>
      >>> Juho
      >>
      >> --yes, I agree that argument for A>B makes sense.
      >> What does not make sense to me is saying A>B and D>C at the same
      >> time.
      >>
      >>
      >>
      >>
      >> ------------------------------------
      >>
      >> Yahoo! Groups Links
      >>
      >>
      >>
      >



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