See http://80000hours.org/blog/12-salary-or-startup-how-do-gooders-can-gain-more-from-risky-careers.
The expected value of risky careers like startups if often much higher than less risky careers. However, this is more than offset by peoples' risk-aversiveness due to diminishing marginal utility. But... if you're an effective altruist, the money you make doesn't have diminishing marginal value. So... it seems that risky careers like startups are a good choice, if you're trying to maximize your positive impact.
Well, in any efficient market model, the risk-adjusted returns would have to be the same. And if you don't have an efficient market model, how are you measuring risk-aversion?
See http://80000hours.org/blog/12-salary-or-startup-how-do-gooders-can-gain-more-from-risky-careers.
The expected value of risky careers like startups if often much higher than less risky careers. However, this is more than offset by peoples' risk-aversiveness due to diminishing marginal utility. But... if you're an effective altruist, the money you make doesn't have diminishing marginal value. So... it seems that risky careers like startups are a good choice, if you're trying to maximize your positive impact.
What do you guys think?