15 - 2 - Utility Functions- Probabilistic Graphical Models - Professor Daphne Koller
Different kinds of utility/(value/money) curve indicate different behaviour
most people are risk averse: prefer less money for certain, than more money in expectation, up to a degree. The difference between these quantities is called the insurance/Risk premium, and is what Insurance companyes use to make money.. See here
But why are we comparing with money? Why do we call the Maximum expected utility, with respect to money, risk neutral? Feel like there are some holes in the theory/my understanding here..