When I moved to Israel for a new job, my wife and I sold our house, taking a risk and committing to success. I explain non-rigidity with the example of baking a cake. If you bake a cake once, it's likely to be bad. But if you bake it multiple times, you'll eventually get some good ones. Non-rigidity in this case is a good thing because it leads to learning and positive outcomes.
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.