单词 | risk-loving |
释义 | risk-loving Preferring a project with dispersed possible outcomes to a certain project with the same mean return. Such preferences could arise from a utility function with increasing marginal utility of total wealth: an individual with such preferences would always accept gambles at actuarially fair odds, and would accept some gambles with less than actuarially fair odds. It is necessary to distinguish between risk-loving in this sense and gambling for the sake of its entertainment value. Gambling for fun is extremely common in the real world; systematic risk-loving is not. Many people who bet on horses or lotteries still insure their houses: they are willing to accept gambles with a limited loss and a small chance of a large gain, but reject the gamble of an uninsured house where a limited gain from not paying premiums is balanced against a large loss if the house burns down. |
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