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Re:Ask HN: How to disclose something without disclosing it? by jey on Sunday July 15, 2018 @07:33PM (#17537721)
No, insurance works because of the asymmetry of the payoffs. It's a positive sum interaction because the insurer thinks they've priced the policy with enough margin to make a profit, but you think it's a great deal because it looks cheap enough that you'll buy it even though the thing it guards against is improbable.
Re:Ask HN: How to disclose something without disclosing it? by perl4ever on Sunday July 15, 2018 @07:42PM (#17537753)
That implies buyers of insurance are being tricked, which I don't think is true. Reducing the variance of your costs is worthwhile.
Re:Ask HN: How to disclose something without disclosing it? by jey on Sunday July 15, 2018 @08:54PM (#17537997)
I'm not claiming there's trickery involved. It's just a positive-sum trade between two agents. Normally I would write down an example to clarify what I'm saying but not right now, sorry. I agree that the phrase "asymmetric payoffs" is unclear/confusing.