-
and the losses tend to dominate,
-
so you don't want to take the bet.
-
The weighting function incorporates
-
Samuelson's lunch colleague's problem:
-
that people don't want to take bets that are to their advantage.
-
It goes back to a kink in the utility function.
-
Now, incidentally,
-
this is fundamentally different from--
-
in economic theory economists would say,
-
well, you can put a kink in the utility function.
-
There could be some wealth level that's special to you.
-
But a theory economist