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Joined 1 year ago
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Cake day: June 12th, 2023

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  • If we only consider the monetary value, both “briefs” have the same value. Otherwise if we incorporate utility theory with a concave bounded utility curve over the monetary value and factor in other terms such as ease of payments, or weight (of the drawn money) then the “worth” of the 100 dollar bills brief could be greater for some people. For me, the 1 dollar bills brief has more value since I’m considering a potential tax evasion prosecution. It would be very suspicious if I go around paying everything with 100 dollar bills, whereas there’s a limit on my daily spending with the other brief (how many dollars I can count out of the brief and then handle to the other person).











  • Indeed very interesting. It is a fundamental principle of finance: Investors seek to maximize utility, but this is under the axiom of complete rationality. And even if that condition is met (which I doubt), the utility function of money is not concave at all levels, for example leftmost of the graph, before the price of food. I think that after some point, utility becomes flat and Musk is way beyond that point. Additionally he seems to be a risk loving investor, not a risk averse.