Explainer: how our understanding of risk is changing
- Written by Robert Hoffmann, Professor of Economics, RMIT University
Under the traditional notion of risk, people react predictably based on how risk-tolerant they are. Here, risk is calculated by combining the probability of something occurring (such as rolling a six with a pair of dice) with the value of the outcome (how much you have wagered).
But our understanding of risk is changing. We now know that a whole...
Read more: Explainer: how our understanding of risk is changing