Consumer Choice

Consumer choice works against consumers in situations where there is some difficult to quantify risk involved. Individuals will on average do a bad job of estimating that risk, so producers, who can afford analysts to accurately calculate risk, see that as an arbitrage opportunity to be exploited.


Their uniting belief seems to be that because they are apparently capable of avoiding the dangerous consequences of unfettered ‘free choice’ – addiction, obesity, death, etc – governments should not spend money helping less educated, less disciplined and almost always less wealthy people do the same.

How To Be Right: … in a world gone wrong, James O’Brien, Loc 1846