[Computer-go] Computer Go and EGC 2012

[Don Dailey]

On Thu, Jan 19, 2012 at 1:39 PM, Jacques Basaldúa <jacques at dybot.com> wrote:

>  > I don't disagree with any of this.   I probably made it seem
> irrational by****
>
> > my description and to be sure humans usually are quite irrational when it
> ****
>
> > comes to these kinds of tradeoffs,  but there is also an element of
> common****
>
> > sense that is very important.     ****
>
> ** **
>
> This problem is well known as the "marginal utility of money". It is clear
> that the correct answer depends on your income as the rational decision is
> maximizing utility, not money.****
>
> ** **
>
> E.g. Choice between:****
>
> ** **
>
> 1. $10 for sure****
>
> 2. 1 in 20 of winning $500****
>
> ** **
>
> Most people would chose 2 since the expected value is 2.5 times more than
> 1. ($10 is "nothing", $500 is "something")****
>
> ** **
>
> but if you multiply by 100,000****
>
> ** **
>
> 1. $1 million for sure****
>
> 2. 1 in 20 of winning $50 million****
>
> ** **
>
> Most people would take 1, (19 chances in 20 of "losing" the million) but a
> billionaire would probably prefer 2 ;-)
>

Exactly.    This is STILL risk aversion however,  it's just that risk is
not just a money thing, it involves many factors.



> ****
>
> ** **
>
> Jacques.****
>
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