- A 2x2 table,
- with X-axis is Gain&Loss,
- Y-axis is Low&High Probability.
- HighProb-Gain is Utility Theory
- LowProb-Gain is why lotteries are popular
- LowProb-Loss makes insurance popular
- exists in the form of bad gambles, risk-taking, etc.
The Fourfold Pattern
© 2022 • Contents under CC-BY-NC • Credits