[Eliezer]

Are you short these companies, then? Or are you buying puts?

[redmondbarry]

You appear to subscribe to the shotgun clause school of economics.

Do you not buy insurance? Do you buy lots of Powerball tickets when the jackpot gets large enough to make the average return exceed their cost?

[orangecat]

The utility of money is not linear across large ranges.

Do you not buy insurance?

I have insurance against catastrophic events, because incurring $100,000 in medical expenses is more than 100 times as bad as spending $1000 in premiums. I don't buy extended warranties.

Do you buy lots of Powerball tickets when the jackpot gets large enough to make the average return exceed their cost?

No, because winning $100 million isn't 100 times as good as winning $1 million.

[pron]

I'd short many of them if I had the cash.