Kai Ruggeri is an assistant professor at Columbia University’s Mailman School of Public Health, and he has a proposition for you.
Would you like a guaranteed $90? Or a 90% chance of $100?
I personally went with the guaranteed $90. (I didn’t get the actual money this is conceptual!) And so would most people. For getting only ten more dollars, we wouldn’t risk the other 90, even with those odds.
“When the differences are small, we don’t like to take risks with gains (but we do for losses),” Ruggeri said. “When the differences become larger, that changes,” he said, armed with a new set of propositions.
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