For section III. it would be really helpful to concretely work through what happens in the examples of divorce, nuclear war, government default, etc. What’s a plausible thought process of the agents involved?
My current model is something like “my marriage is worse than I find tolerable, so I have nothing to loose. Now that divorce is legal, I might as well gamble my savings in the casino. If I win we could move to a better home and maybe save the relationship, if I lose we’ll get divorced.”
People who have nothing to lose start taking risks which fill up the merely possibly bad outcomes until they start mattering.
For section III. it would be really helpful to concretely work through what happens in the examples of divorce, nuclear war, government default, etc. What’s a plausible thought process of the agents involved?
My current model is something like “my marriage is worse than I find tolerable, so I have nothing to loose. Now that divorce is legal, I might as well gamble my savings in the casino. If I win we could move to a better home and maybe save the relationship, if I lose we’ll get divorced.”
People who have nothing to lose start taking risks which fill up the merely possibly bad outcomes until they start mattering.