Thinking Fast and Slow: What Kahneman Teaches Us About Urban Innovation
Kahneman shows that if potential earnings are bigger than potential losses then the most rational strategy is to take the risks even in 50% gambles (this, of course, does not exclude adopting risk mitigation policies). In cases where the probabilities of winning are greater than 50% and the reward in case of earning is greater than the loss in case of failing, not adopting innovative policies may cost public institutions large amounts of tax dollars.