Hacker News new | ask | show | jobs
by mlrtime 144 days ago
Where does money land on that proverb?

Meaning people have very short term memories when some sort of financial incentive is inserted.

2 comments

Trust is something you can give a price to.

The higher the risk of e.g. a loan, the more interest it has to pay out to be worthwhile. The exact amount* is, as I understand it, governed by the Black–Scholes model.

* probably with some spherical-cows-in-a-vacuum assumptions given how the misuse of this model was a factor in the global financial crisis.

Well, ask yourself where'd it get the horse