It encourages risk taking towards the extremes. To make it concrete: - If you go to the casino with your own money, rational people will gamble what they can a

It encourages risk taking towards the extremes. To make it concrete: - If you go to the casino with your own money, rational people will gamble what they can afford to lose. - If you go to the casino but are told that whatever you lose, someone else will cover your losses, how much will a rational person gamble?