I’m not quite sure what you’re first sentence is referring to, but fool prefers risk to uncertainty. From his post:
given a bet on red whose payoff has utility 1, and a bet on green whose payoff has utility N, what is the critical N where I am indifferent between the two?
Isn’t this −1 and −4, not −1 and −1? I think you want −3/N = −1.5.
I’m not quite sure what you’re first sentence is referring to, but fool prefers risk to uncertainty. From his post: