As the Wikipedia says, “If the distribution has finite variance”. That’s not necessarily a good assumption.
In fact, “Pascal’s mugging” scenarios tend to pop up when you allow for utility distributions with infinite variance.
For Pascal’s Muggings I don’t think you care that much about variance—what you want is a gargantuan skew.
In fact, “Pascal’s mugging” scenarios tend to pop up when you allow for utility distributions with infinite variance.
For Pascal’s Muggings I don’t think you care that much about variance—what you want is a gargantuan skew.