Except if your entire wealth is at stake, being risk adverse is not rational. That is the whole point of Thinking Fast and Slow. Proof is easy: I give you the

Except if your entire wealth is at stake, being risk adverse is not rational. That is the whole point of Thinking Fast and Slow. Proof is easy: I give you the choice to play on the flip of a coin, one side you win $1200 other side you loose $1000. You'll likely refuse because of fear of loss. Then consider I propose the bet 1000 times in a year, under different disguise so you don't recognize it. You lost 200 000! It is not rational to refuse a net positive bet it of irrational fear of loss. It is even more obvious for the lottery, because we would all agree that paying lottery ticket is irrational, right?