If you play long enough, unless you engage in strategies designed by traders and rediscovered by every single surviving trader, a very similar strategy is to play with the house money. The strategies that followd you gowish a hundred dollars, whatever you ave, and you bet a dollar. If you lose, you bet less than a dollar. And if you make money, you start bedding with he house money. Increase your debt as youre making money, and you reduce your debt as your losing money. That strategy is practically the only one that that s you to gamble or engage in risky strategy of that ruin.
Nassim Nicholas Taleb, author of Skin in the Game, talks with EconTalk host Russ Roberts about the ideas in the book. This is the third episode of EconTalk with Taleb related to the general topic of skin in the game and how it affects decision-making and policy in an uncertain world. This episode focuses on rationality, religion, and the challenge of thinking about probability and risk correctly in a dynamic world.