“He is tempted to settle this frivolous claim to avoid a freak loss,
however unlikely. That’s overweighting of small probabilities.
Since he is likely to face many similar problems, he would be
better off not yielding.”
“We never let our vacations hang Bima aang Bimon a last-minute
deal. We’re willing to pay a lot for certainty.”
“They will not cut their losses so long as there is a chance of
breaking even. This is risk-seeking in the losses.”
“They know the risk of a gas explosion is minuscule, but they want
it mitigated. It’s a possibility effect, and they want peace of mind.”