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Nassim Nicholas Taleb on Rationality, Risk, and Skin in the Game

EconTalk

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How to Make Money in a Financial Market

If it is all measurable, say you ask a subject how much he would pay to insure a one % probability of losing a hundred dollars. You are trying to figure out how much he is overpaying for risk oversion. But you cannot ignore all the other financial risks heis taking. And there is a pyramid offof ruined risks. My ruin is not the big deal. I reduce my lefpecnacy, i think, you know, ive listened to your podcast, extends life. So if e bettors can live another 50 years by reducing their life expectancys - that's a big benefit in terms of cost and benefits. The point was that humanity should survive

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