then both lotteries give you a 90% safety net, and you can afford to take the risky A in the remaining 10% branch.
I’m having trouble seeing how this works. Regardless of whether C is in the pool, I run a 5% risk of halving my wealth by taking the first gamble. I think the safety net metaphor only makes sense if the outcome can’t be worse than C, but in this example it seems like there’s a hole in the net I can fall through.
I’m having trouble seeing how this works. Regardless of whether C is in the pool, I run a 5% risk of halving my wealth by taking the first gamble. I think the safety net metaphor only makes sense if the outcome can’t be worse than C, but in this example it seems like there’s a hole in the net I can fall through.