DMU is only rational when applied to the larger sums. It’s pretty believable that much of what’s called loss aversion is a broken heuristic in human brains, which mis-implements DMU by picking way-too-small reference classes. IMO, hyperbolic discounting is a related evolved heuristic which conflates value discounting and future uncertainty.
That makes a lot of sense to me. Aversion to small losses makes a ton of sense as a blanket rule, when the gamble is:
lose: don’t eat today
win: eat double today
don’t play: eat today
Our ancestors probably faced this gamble since long before humans were even humans. Under those stable conditions, a heuristic accounting for scale would have been needlessly expensive.