Thread by @jben0

@ole_b_peters @octonion @majilato @econometricsoc Thanks for sharing your new take on Bernoulli, and discussing. It was fun & interesting, most (all?) folks don't know this.

@ole_b_peters @octonion @majilato @econometricsoc Ps. With regard to your separate agenda on time-averages/expected growth: you mention that it delivers an understanding to econ/psych, and mention two items. I am not following...

@ole_b_peters @octonion @majilato @econometricsoc 1) Descriptive psychology: you write, "Here the physical explains the subjective: we sense losses more strongly than gains." It sounds like you are saying that maximizing log gross return can explain loss aversion, is that right?

@ole_b_peters @octonion @majilato @econometricsoc 2) Normative economics: using logarithm for the vN-M utility function is fraught; for many public policy issues it is useless, see e.g. columbiariskmanagement.com/pdfs/Arrow_Art…, so the understanding of economics must be somewhere else (I have seen it applied in the market selection literature)

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