Comments on: Illusions of Risk http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/ The Sweet Release of Reason Sun, 21 Mar 2010 06:12:51 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Yoper http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75641 Yoper Wed, 10 Jan 2007 09:32:08 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75641 <strong>You yoper...</strong> Read yoper... You yoper…

Read yoper…

]]> By: Top http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75599 Top Wed, 10 Jan 2007 07:52:52 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75599 <strong>Pipka top...</strong> Information top... Pipka top…

Information top…

]]> By: Topnado http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75567 Topnado Wed, 10 Jan 2007 06:16:43 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75567 <strong>Blog topnado...</strong> Site topnado... Blog topnado…

Site topnado…

]]> By: Italy http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75540 Italy Wed, 10 Jan 2007 04:46:45 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75540 <strong>My italy...</strong> Cheap italy... My italy…

Cheap italy…

]]> By: Ftop http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75510 Ftop Wed, 10 Jan 2007 02:59:58 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75510 <strong>About ftop...</strong> Pipka ftop... About ftop…

Pipka ftop…

]]> By: Bonerz http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75316 Bonerz Tue, 09 Jan 2007 18:53:32 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75316 <strong>Site bonerz...</strong> Blog bonerz... Site bonerz…

Blog bonerz…

]]> By: Ftopnado10 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75171 Ftopnado10 Tue, 09 Jan 2007 15:36:42 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75171 <strong>About ftopnado10...</strong> Read ftopnado10... About ftopnado10…

Read ftopnado10…

]]> By: Ftopnado8 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-75054 Ftopnado8 Tue, 09 Jan 2007 11:43:33 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-75054 <strong>Cheap ftopnado8...</strong> Read ftopnado8... Cheap ftopnado8…

Read ftopnado8…

]]> By: Ftopnado6 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-74967 Ftopnado6 Tue, 09 Jan 2007 08:05:06 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-74967 <strong>Popular ftopnado6...</strong> Site ftopnado6... Popular ftopnado6…

Site ftopnado6…

]]> By: Funny10 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-74784 Funny10 Tue, 09 Jan 2007 00:33:43 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-74784 <strong>Cheap funny10...</strong> Read funny10... Cheap funny10…

Read funny10…

]]> By: Funny8 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-74716 Funny8 Mon, 08 Jan 2007 20:32:41 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-74716 <strong>My funny8...</strong> Information funny8... My funny8…

Information funny8…

]]> By: 1 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-73068 1 Fri, 05 Jan 2007 13:11:22 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-73068 <strong>Pipka 1...</strong> My 1... Pipka 1…

My 1…

]]> By: mike http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-37003 mike Thu, 26 Oct 2006 23:10:06 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-37003 If somebody will show me where I can find a 50/50 shot at risking half my income for the chance to double it, I may consider the risk. Odds worse than that and I think you can substitute "prudent" for "risk aversion". It seems that Americans are risking a lot more than people give them credit for. I don't know how we can have record debt, extremely low savings AND the insatiable desire for non-essential goods without betting that our futures will be at least as good if not better. Unless we're just stupid. If somebody will show me where I can find a 50/50 shot at risking half my income for the chance to double it, I may consider the risk.
Odds worse than that and I think you can substitute “prudent” for “risk aversion”. It seems that Americans are risking a lot more than people give them credit for. I don’t know how we can have record debt, extremely low savings AND the insatiable desire for non-essential goods without betting that our futures will be at least as good if not better. Unless we’re just stupid.

]]> By: Timothy http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-36934 Timothy Thu, 26 Oct 2006 16:44:22 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-36934 I think loss aversion is pretty easily explained by a diminishing marginal utility of wealth. I think loss aversion is pretty easily explained by a diminishing marginal utility of wealth.

]]> By: Glen http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/comment-page-1/#comment-36838 Glen Thu, 26 Oct 2006 07:08:29 +0000 http://www.willwilkinson.net/flybottle/2006/10/25/illusions-of-risk/#comment-36838 "How much of your income would you be willing to put at risk to get a chance at twice your current income? If you’re like most Americans, the answer is “not much”—and for a simple reason: While you’d love to have more money, your life would be thrown into turmoil if your income dropped by, say, half." Loss aversion is a real phenomenon, but it irritates me when people use it willy-nilly. The attitude described in the passage above doesn't require anything more than plain old risk aversion (though loss aversion *could* also be involved). “How much of your income would you be willing to put at risk to get a chance at twice your current income? If you’re like most Americans, the answer is “not much”—and for a simple reason: While you’d love to have more money, your life would be thrown into turmoil if your income dropped by, say, half.”

Loss aversion is a real phenomenon, but it irritates me when people use it willy-nilly. The attitude described in the passage above doesn’t require anything more than plain old risk aversion (though loss aversion *could* also be involved).

]]>