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The asymmetry is not in information but in the potential gains and losses. Even if the overall EV is lower than 1, it's about risking £100 for a potential £1000
by IanCal 4y ago
The asymmetry is not in information but in the potential gains and losses. Even if the overall EV is lower than 1, it's about risking £100 for a potential £10000 or other much larger figure, 10x/100x/10000x.
- lxgr 4y agoIf you don't care about negative expected values, bets of that nature are widely available in many countries in the form of lotteries.
- IanCal 4y agoI didn't say people don't care, but that the EV is not relevant for calling it an asymmetrical bet. The EV may also be under 1 for the value but may be >1 for utility. That can easily be true for things with more moderate returns than the extremes of lotteries.