Abstract

This chapter presents a model of risk‐taking behaviour. That is, it describes some simpler patterns of preference than real people ever have, and then discusses some strategies that would make sense for people with these simple preferences when faced with choices between risky options. These strategies can also make sense for people, with the more complicated preferences. The chapter also discusses some more detailed assumptions about snobs' preferences. There are several ways in which the Snobs can find their way through risky situations. The chapter considers two. The first is, in effect, to refuse to reason probabilistically. Given every risky prospect they can decide what the most likely outcome is, equate it to a certainty of that outcome, and choose accordingly. In more complex situations something closer to real probabilistic reasoning will be needed. And this is the second way in which preferences such as those of the snobs can come to terms with risk.