I don’t think “risk aversion” was labelled as a cognitive bias by anyone in the economics orbit. It just flows from diminishing marginal utility of income. But please let me know if you have some references for this.
I don’t know about economics, but ‘risk aversion’ is standardly treated as a ‘cognitive bias’ in psychology, e.g. here
And the interviews with SBF (in the OP) seem to hint that he viewed risk aversion as more-or-less irrational, from the perspective of expected value theory.
I agree with your point that risk aversion regarding income is not ‘irrational’ given diminishing marginal utility of income.
I don’t think “risk aversion” was labelled as a cognitive bias by anyone in the economics orbit. It just flows from diminishing marginal utility of income. But please let me know if you have some references for this.
I don’t know about economics, but ‘risk aversion’ is standardly treated as a ‘cognitive bias’ in psychology, e.g. here
And the interviews with SBF (in the OP) seem to hint that he viewed risk aversion as more-or-less irrational, from the perspective of expected value theory.
I agree with your point that risk aversion regarding income is not ‘irrational’ given diminishing marginal utility of income.