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

EconTalk

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Is It Irrational to Treat Money Differently for the Money You Lose?

There's not any symmetry there between winds and losses that one might think of as irash. In fact, i mean a behaviour of the colonists have something called mental accounting wic which states exactly what you said. The idea in the idea in social science of loss version has not been thought through properly. It is not measurable the way it has been measured. And its shockingly a provocative especially when we think about what is going through people's heads when they're sitting in an experiment That we're trying to generalize from.

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