Redlining

[E. Allen Smith]

From:	IN%"ichudov at algebra.com" 11-DEC-1996 19:45:12.83

>A good question. It is based on the theory that every person has a
>"utility" function in their mind. This function determines the "worth"
>of money and worthiness of risk. 

>If that function as a function of income is strictly concave

	Except in the case of a consumer for whom the lower end is essentially
no different than 0 - e.g., a minimum amount for survival - having a concave
utility function for money (as opposed to less-convertible goods/services)
is irrational. While I am in favor of allowing people to be irrational if they
so desire, I am not in favor of governmental rules (e.g., coercive rules) being
determined by irrationality. See my comments on emotion to Matt M.
	-Allen