23 August 2011

Risk Adverse is true, but only to certain extent...

Let me give you example  of risk adversion:

Now you are in a game, that offers you 50% of chance to win 200 and 50% of chance to lose 100 dollar. Are you willing to take the bet?

Now, you are in another game, and the game offers you 50% of chance to win 2000 and 50% of chance to lose 1000 dollar. Are you willing to take the bet?

And now, you are in another game, and the game offers you 50% of chance to win 20,000 and 50% of chance to lose 10,000 dollar. Are you willing to take part in the game?

And now, you are in the final game, and the game offers you 50% of chance to win 200,000 and 50% of chance to lose 100,000 dollar. What is your choice now?

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