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Khoth comments on What makes buying insurance rational? - Less Wrong Discussion

3 Post author: rayalez 31 March 2016 08:50PM

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Comment author: Khoth 05 April 2016 09:51:47PM *  2 points [-]

Not if the marginal utility of money decreases as you have more.

If your utility function has convex parts then it might be possible, though. If you have $1000 but owe the Mafia $2000 and they're coming to collect, betting it all on black might be a good idea.