Higher risk strategies are necessary in some industries super competitive industries. You play it save and your competitor takes the risk and they put you out o

Higher risk strategies are necessary in some industries super competitive industries. You play it save and your competitor takes the risk and they put you out of business before the rare event happens. If you both take the risk, then when the rare event happens you both are screwed equally and aren't out of business. Combine that with the evolution of an industry (safe players dying out) and it's another dynamical systems thing. Industries get riskier and more coupled and more efficiently tuned to normal circumstances then blow up.