The Loss That Ends the Game

A result after which the choice can never be made again: money gone past recovery, or a life. Where one is possible, the chance of avoiding it is weighed before the size of the win, because a party lives one path, not the average of many.

L3Level 3 of 3 · no narrower concepts

What it rests on, and what rests on it

It rests on

Rests on it

Nothing rests on it yet.

Related

Where it is used

Articles

  • Definition before decision

Characters

In the model

  • The glossary's “chance”

Sources

  1. Ole Peters, Nature Physics 15(12), The ergodicity problem in economics, 2019.
  2. Ole Peters and Murray Gell-Mann, Chaos 26(2), Evaluating gambles using dynamics, 2016.
  3. Daniel Bernoulli, Econometrica 22(1), Exposition of a New Theory on the Measurement of Risk, 1738; English translation 1954.
  4. J. L. Kelly Jr, Bell System Technical Journal 35(4), A New Interpretation of Information Rate, 1956.
  5. Nassim Nicholas Taleb, Skin in the Game: Hidden Asymmetries in Daily Life, 2018.