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There is the fact that to a certain extent, entrepreneurs know their odds going in. Gamblers more likely than not doesn't.
by NhanH 13y ago
There is the fact that to a certain extent, entrepreneurs know their odds going in. Gamblers more likely than not doesn't.
- bdcravens 13y agoMany gamblers know the numbers fairly well. The problem is they let their heart convince them that the Gambler's Fallacy doesn't exist for them.
- judk 13y agoThat's exactly backwards. Most games of chance post odds explicitly. Entrepeneurship works because 1 it actually creates value, not negative expected value, 2 much of the gambling is with other people's money (investors and creditors) who don't get their teeth in if the entrepreneur fails, raising EV further.
- NhanH 13y agoSorry I wasn't being too clear. Knowing the odds as in "I know I have little chance to have an exit, but I still want to do it anyway". While gamblers might see the odds posted but still think "I'm gonna be the one guy who wins".