> > I don't know the evidence on the point, but you are proposing the expected > > utility model with risk neutrality. > > No, that's not it. I'm not saying people maximize expected earnings. > The functional form I'm proposing is the much weaker one that they > prefer higher expected earnings to lower expected earnings.
I don't understand the difference. If I always prefer higher expected earnings, then by transitivity I will end up picking the highest, which is to say the maximum. Bill Sjostrom
