Memorial Hall Library

An economist walks into a brothel, and other unexpected places to understand risk, Allison Schrager

eng

Includes bibliographical references (pages [209]-213) and index

illustrations

index present

non fiction

An economist walks into a brothel

bibliography

1045176153

Allison Schrager

and other unexpected places to understand risk

"Most people wouldn't expect an economist to have an answer to these questions--or to other questions of daily life, such as who to date or how early to leave for the airport. But those people haven't met Allison Schrager, an economist and award-winning journalist who has spent her career examining how people manage risk in their lives and careers. Whether we realize it or not, we all take risks large and small every day. Even the most cautious among us cannot opt out--the question is always which risks to take, not whether to take them at all. What most of us don't know is how to measure those risks and maximize the chances of getting what we want out of life. In An Economist Walks into a Brothel, Schrager equips readers with five principles for dealing with risk, principles used by some of the world's most interesting risk takers. For instance, she interviews a professional poker player about how to stay rational when the stakes are high, a paparazzo in Manhattan about how to spot different kinds of risk, horse breeders in Kentucky about how to diversify risk and minimize losses, and a war general who led troops in Iraq about how to prepare for what we don't see coming. When you start to look at risky decisions through Schrager's new framework, you can increase the upside to any situation and better mitigate the downsides"--, Provided by publisher

Introducing risk: the what and unusual where of it -- Reward: getting what you want takes knowing what you want -- Taking a risk: when to reject safety and go for more -- Risk measurement: Hollywood's never-ending quest for certainty -- Different types of risk: the secret lives of the paparazzi -- Prospect theory: tilting towards rationality -- Risk misperception: I never thought I'd get caught -- Diversification: looking for efficiency in all the wrong places -- De-risking: the art of the hedge -- Insurance: introducing the spectacular stock option -- Moral hazards: surfing big waves with insurance -- Uncertainty: the fog of war