Think about populations versus individuals. You only get the long term returns invoking the law of large numbers, if you stay in the game. And part of this concept, we haven't named it yet, by the way, I've loved it so far,. We have not used the E word, but part or the non E word. It's a very good framework that you can apply in a lot of situations where you have two parties with two different time horizons," he said.
Author and consultant Luca Dellanna talks with EconTalk host Russ Roberts about the importance of avoiding ruin when facing risk. Along the way Dellanna makes understandable the arcane concept of ergodicity and shows the importance of avoiding ruin in every day life.