(I don't have a) gears-level model for prospect theory
ID: 2dbc7b69-0df1-43e5-b373-140ea776d326 REVIEW_SCORE: 0.0 MTIME: [2024-12-25 Wed 16:03]
Why does a set point make sense? I can't help but feel like it represents something important about rational risk-aversion following from accounting for model error. Like, leaving a buffer for what can screw you that you don't see coming.
Reasoning from distances of a scenario from a set point representing the status quo seems like a good heuristic for valuing known-goods higher than maybe-goods. Bird-in-hand logic. This in turn seems connected to scarce-resource reasoning.
Increasing a sense of safety then in theory should naturally push one to be both more risk-seeking and more resource-generous. the link between safety and these behaviours is pretty direct in my experience.