Russian or let if played by an individual has this problem of your reversible losses that move the expected average win from let's say $5,000 to zero over long term. If you see it from the point of view of a hypothetical company that employs Russian or let players, and they can just hire new people when someone dies. Exactly. I think it's a very useful way for thinking about society-wide risks When you're making a distinction between the risk to one person versus the risk to the society or the world. And right now, a lot of us have done a bunch of episodes on chat GPT. The others survived, thrived at least in the short run.
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.