This is an old post, but I guess one resolution is that:
U($24,000) > 33⁄34 U($27,000) + 1⁄34 U($0 & Regret that I didn’t take the $24000)
Which is consistent with:
0.34 U($24,000) + 0.66 U($0) < 0.33 U($27,000) + 0.67 U($0)
It’s an interesting psychological fact that the regret is triggered in one case, but not the other.
This is an old post, but I guess one resolution is that:
U($24,000) > 33⁄34 U($27,000) + 1⁄34 U($0 & Regret that I didn’t take the $24000)
Which is consistent with:
0.34 U($24,000) + 0.66 U($0) < 0.33 U($27,000) + 0.67 U($0)
It’s an interesting psychological fact that the regret is triggered in one case, but not the other.