3 ms·
> then you might have maximized the probability of achieving that qualitative difference No, you have only maximized the probability if you bet all of your mon
by carlosjobim 2y ago
> then you might have maximized the probability of achieving that qualitative difference
No, you have only maximized the probability if you bet all of your money and all of the money you can borrow, beg or steal.
- immibis 2y agoUtility is a non-linear and hard-to-estimate function of money. I may be almost as well off with $5000 as with $10000, since either case I can afford groceries until the next paycheck and still need to keep my job, but much worse off if I have $0, since I can't afford groceries, and much better off if I have $5,000,000, since I don't need a job, but not much better off from that if I have $10,000,000. If I can bet $5000 for a chance of $5,000,000 it might be worth it, but betting $10000 would leave me penniless and not increase my possible reward that much - what am I going to do, buy two mansions if I win? Buy a bigger one that I have no use for?
- bee_rider 2y agoThat is true, maximized is the wrong word. But you’ve increased the odds in a way that might not be available otherwise. Actually maximizing could have a major cost.