What about how much money you have?
by
fcrick
06/10/2008, 4:42 PM #
Seems to me its perfectly rational to pick A on the first question, because regardless of the chances in B, I'd rather have $1m+ then no money at all, especially if my personal fortune isn't near $1m.
Then in the 3rd question, I'd pick B, simply because I already have the $1m from the 1st question. Getting $2m is nice, but not twice as nice as $1m - $6m, on the other hand, seems like its probably quite a bit better than $2m, especially if you know you'll end up with the $1m from the first question, regardless.