1228
Just one more lane (sh.itjust.works)
submitted 7 months ago by sjmarf@sh.itjust.works to c/memes@lemmy.ml
157 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[-] xavier666@lemm.ee 2 points 7 months ago

If you make B less risky, you’ll get a new category of people. If you make it more risky, you’ll lose categories.

Can you explain what this part means? What do you mean by category here?

[-] Hammocks4All@lemmy.ml 2 points 7 months ago

Yes. That wasn’t the best word choice; maybe “group” would have been better. I meant groups of people who are willing to take some level of risk. Imagine the categories are “low risk takers”, “medium risk takers”, and “high risk takers”.

Compared to A paying out $40, if you make B $50-n you’ll only get the high risk takers choosing B. If you make it $70-n you’ll get high and medium risk takers. If you make it $120-n you’ll get almost everybody.

If risk taking is a value between 0 and 1, the categories are groups of people inside certain intervals. For example, low could be [0, 1/3), medium could be [1/3, 2/3), and high could be [2/3, 1].

this post was submitted on 09 May 2024
1228 points (97.4% liked)

Memes

45912 readers
1749 users here now

Rules:

  1. Be civil and nice.
  2. Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.

founded 5 years ago
MODERATORS
gary_host_laptop@lemmy.ml
sexy_peach@feddit.de
cyclohexane@lemmy.ml
cypherpunks@lemmy.ml