Posts Tagged ‘expected value’

Symposium: I am not Delusional

Josh, it seems to me that your argument comes down to this paragraph:

“Unless John is completely risk-averse, he should be attending shows if the expected value (based on reviews and reputation) meets a certain threshold, say the ‘really good’ threshold. What about price? Well, his price cap should be based on his initial willingness to pay. If he were originally willing to pay $15 for a ‘really good’ comedy show, then—if that expected value is met—he should still be willing to pay $15.”

There are two problematic concepts here: a) the “really good” threshold and b) my willingness to pay.

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