I have read an analysis of the teaching profession where highly motivated people choose against become teachers not just because of a low salary, but because of low salary variability. Expected teacher salaries don't get much worse even if the teacher does not try, and is not good at teaching.
Most people will not choose an outcome distribution which is highly concentrated on one spot, even if that has the highest expected return. People who are highly motivated are even less likely to choose it.
Most people will choose less expected return (sacrifice gains), and more risk by buying a lottery ticket.
I think the notion of lower risk being good comes from the financial world where you can use leverage on a lower risk position to create a higher return one.
I think people choose outcome distributions that are quite different than a low risk one.
Most people will not choose an outcome distribution which is highly concentrated on one spot, even if that has the highest expected return. People who are highly motivated are even less likely to choose it.
Most people will choose less expected return (sacrifice gains), and more risk by buying a lottery ticket.
I think the notion of lower risk being good comes from the financial world where you can use leverage on a lower risk position to create a higher return one.
I think people choose outcome distributions that are quite different than a low risk one.