See the St Petersburg paradox for a good example of this. https://en.wikipedia.org/wiki/St._Petersburg_paradox https://en.wikipedia.org/wiki/St._Petersburg_par

See the St Petersburg paradox for a good example of this. https://en.wikipedia.org/wiki/St._Petersburg_paradox https://en.wikipedia.org/wiki/St._Petersburg_paradox Another example that we all participate in is insurance. We all make an expected loss on insurance, but we lower the variance of our outgoings by doing it, so most of us are happy to take the hit.