Risk aversion, as it applies to wages and startups, is measured in money not utility. If you spend money only on yourself it has diminishing returns: the first $50K has a huge effect on your happiness, while the $50K that takes you from $5M to $5.05M much less. So you’d be quite rational to be risk averse in terms of money, preferring a certainty of $1M to even odds of $3M.
(I give away 30% of my money, and if I suddenly earned a large amount I would probably give away more. Charity doesn’t have diminishing returns until you’re giving huge amounts of money, so I’m not very risk averse.)
Risk aversion, as it applies to wages and startups, is measured in money not utility. If you spend money only on yourself it has diminishing returns: the first $50K has a huge effect on your happiness, while the $50K that takes you from $5M to $5.05M much less. So you’d be quite rational to be risk averse in terms of money, preferring a certainty of $1M to even odds of $3M.
(I give away 30% of my money, and if I suddenly earned a large amount I would probably give away more. Charity doesn’t have diminishing returns until you’re giving huge amounts of money, so I’m not very risk averse.)