Back on topic, I second Lee’s thoughts. My ability to do a simple expected utility calculation would prevent me from ever taking option (1) given a choice between the two, but if I badly needed the $4 for something I might take it. (Initially hard to think of how such a scenario could arise, but $4 might be enough to contact someone who would be willing to bail me out of whatever trouble I was in.)
So it’s going to happen eventually! Yay!
Back on topic, I second Lee’s thoughts. My ability to do a simple expected utility calculation would prevent me from ever taking option (1) given a choice between the two, but if I badly needed the $4 for something I might take it. (Initially hard to think of how such a scenario could arise, but $4 might be enough to contact someone who would be willing to bail me out of whatever trouble I was in.)