Re: Problem: EV++ and risk tolerance in a multiple decision scenario.
It has to do with how much impact the money will have on your life.
$1bn and $2bn will probably have a very similar impact on one's life, while the utility difference between $1k and $2k might be much more significant. I would probably quit at $4k myself.
Also, this has been discussed quite a lot lately. You probably don't even need to use the search function to find it.
|