The expected winnings are in money though, not utility, so risk aversion may be justified.
Yes.
If someone offered me a sure $100,000 or a coinflip between $250,000 and $1, I’m pretty sure I know which one I’d choose. As far as I can see you can only win the big prize if you are rich enough not to be risk averse about amounts that size.
The expected winnings are in money though, not utility, so risk aversion may be justified.
Yes.
If someone offered me a sure $100,000 or a coinflip between $250,000 and $1, I’m pretty sure I know which one I’d choose. As far as I can see you can only win the big prize if you are rich enough not to be risk averse about amounts that size.