Why don’t people just get typical forms of insurance, like health, disability, and unemployment?
Because they’re more expensive?
Standard EV calculations tells you that (given risk neutrality) insurance is a loser’s game, assuming that you don’t have special information that the insurers do not.
Why don’t people just get typical forms of insurance, like health, disability, and unemployment?
Because they’re more expensive?
Standard EV calculations tells you that (given risk neutrality) insurance is a loser’s game, assuming that you don’t have special information that the insurers do not.