[cromd]

I assume you agree that some kinds of opportunities are limited. Not trying new foods because you're afraid of wasting your money would be silly, or not saying hi to your neighbor because they might ignore you would be silly, but some things are very complicated. I'm thinking of: surgeries, mate selection, college degrees, white-collar crime, etc. I'm just saying that utility and loss aversion come into play, and "life is long" can't always save the day.

On startups, I think there are people who have been in situations where they have an expected value greater than something like a FAANG $300k/year over 3 years scenario (e.g. they own a large stake in a close-to-IPO company). And they should maybe still walk away, if the 50% chance of a tiny IPO payout would destroy their self esteem and make them feel even further behind their high-salary peers. (Also keep in mind that not everyone lands jobs at FAANG companies, so it shouldn't be super hard to find people who lucked into a startup where their EV is higher than their market salary over a few years). In other words: even if a startup somehow has higher EV, you may want to ignore the EV.