When people talk about being risk neutral are they only referring to DALYs/QALYs or are they also referring to monetary returns?
For example, if you plan to earn to give and can either take a high-paying salaried position or join a startup and both options have equal EV why shouldn’t you have a preference for the less risky option?
My understanding of why individuals should be risk-averse with respect to money is that money has diminishing marginal returns. Doesn’t money also have diminishing marginal returns for helping other people so EAs should be somewhat risk averse when earning to give?
Doesn’t money also have diminishing marginal returns for helping other people so EAs should be somewhat risk averse when earning to give?
Personally, since it’s very unlikely that I will become a mega-billionaire, I think that my contributions will be so marginal that returns can be considered linear. But you might be interested in https://forum.effectivealtruism.org/topics/risk-aversion
Why should EAs be risk-neutral?
When people talk about being risk neutral are they only referring to DALYs/QALYs or are they also referring to monetary returns?
For example, if you plan to earn to give and can either take a high-paying salaried position or join a startup and both options have equal EV why shouldn’t you have a preference for the less risky option?
My understanding of why individuals should be risk-averse with respect to money is that money has diminishing marginal returns. Doesn’t money also have diminishing marginal returns for helping other people so EAs should be somewhat risk averse when earning to give?
Personally, since it’s very unlikely that I will become a mega-billionaire, I think that my contributions will be so marginal that returns can be considered linear. But you might be interested in https://forum.effectivealtruism.org/topics/risk-aversion