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WOW ..an uncompensated bye was given into the finals of an ABT event!!

Posted By: David Presser
Date: Tuesday, 29 October 2013, at 5:15 a.m.

In Response To: WOW ..an uncompensated bye was given into the finals of an ABT event!! (neilkaz)

From a math la la land point of view, I think the core to this discussion is in our possibly different utility functions.

Bob Kcca and a few more present arguments that reflect a utility function of expected value, while others who object to late round byes reflect a utility function that includes an elasticity of intertemporal substitution such that they prefer early resolution (see http://en.wikipedia.org/wiki/Elasticity_of_intertemporal_substitution)

The latter is believed to be part of the human nature, just like risk aversion is part of human nature.

For those who may find it interesting, in the 1980s or 1990s Epstein and Zin came with a breakthrough and formed a utility function that separates the relatively risk aversion and the elasticity of intertemporal substitution ( see http://en.wikipedia.org/wiki/Epstein–Zin_preferences )

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