Risk Aversion—The Convenience Error

Abstract

R isk and uncertainty can be looked at in behavioral terms. Risk then refers to situations in which the world has provided measurements of what you’re up against, as in casino gambling. Uncertainty is when you only have some qualitative notion of what you’re up against, as when you’re calling a girl to ask her out on a first date. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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