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I see your point. But I would say maximize your utility but even that is questionable. As Daniel Bernoulli (St. Petersburg Paradox) showed, the concept of expec
by Dn_Ab 16y ago
I see your point. But I would say maximize your utility but even that is questionable. As Daniel Bernoulli (St. Petersburg Paradox) showed, the concept of expected value to the real world is not straightforward.
Short of it is: I don't agree. Those other situations are not the same event as this and even often completely unrelated. You cant lump them into the same space and claim positive expectation on their value.
- mattmaroon 16y agoLet me put this another way. If you take every suitable gamble you can, even if they're one time deals, you'll end up further ahead in the long run than the guy who only takes suitable gambles that are repeatable. Thus whether or not the gamble is repeatable should have no bearing on your decision. (I'm using the term suitable somewhat vaguely here, since even +EV gambles can be bad ideas in the long run due to bankroll considerations. But for what we're talking about, we're assuming all the gambles are the same in all other respects.)