If utility dictates that I should not risk $10,000 on a 99% chance of losing it all, it is unlikely that I have the bankroll to play the game as many times as would be required to overcome my risk of losing everything. And by playing multiple times, I have introduced a scenario with significant probability of losing much more than $10,000, which is obviously catastrophic if losing $10,000 means so much to me.
The utility is certainly different, but I wouldn't necessarily claim it is better. It could in fact be worse, but I haven't studied it enough to assert either.
If utility dictates that I should not risk $10,000 on a 99% chance of losing it all, it is unlikely that I have the bankroll to play the game as many times as would be required to overcome my risk of losing everything. And by playing multiple times, I have introduced a scenario with significant probability of losing much more than $10,000, which is obviously catastrophic if losing $10,000 means so much to me.
The utility is certainly different, but I wouldn't necessarily claim it is better. It could in fact be worse, but I haven't studied it enough to assert either.