--- title: "Meaning & Key Takeaway of: Most people have an aversion to risk, my…" description: "\"Most people have an aversion to risk, my college economics professor told me. Which means they have to be rewarded to take on that risk. The higher the..." image: "https://sms4smile.com/quotes/i/894/michael-arrington-12023_aversion_most-people-have-an-aversion-to-risk-my_71388.jpg" --- # Most people have an aversion to risk, my college economics… ![“Most people have an aversion to risk, my college economics professor told me. Which means they have to be rewarded to take on that risk. The higher the risk, the higher the possible payout has to be for people to jump.” quote by Michael Arrington](https://sms4smile.com/quotes/i/894/michael-arrington-12023_aversion_most-people-have-an-aversion-to-risk-my_71388.jpg) [Download](https://sms4smile.com/quotes/i/894/michael-arrington-12023_aversion_most-people-have-an-aversion-to-risk-my_71388.jpg) [Open image](https://sms4smile.com/quotes/i/894/michael-arrington-12023_aversion_most-people-have-an-aversion-to-risk-my_71388.jpg) > “Most people have an aversion to risk, my college economics professor told me. Which means they have to be rewarded to take on that risk. The higher the risk, the higher the possible payout has to be for people to jump.” [Michael Arrington](https://sms4smile.com/quotes/author/michael-arrington/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. People avoid risk unless compensated; higher risk demands higher expected reward to motivate action. **In simple terms:** Risk aversion requires sufficient incentive. Key Takeaway Reward must scale with risk. Themes risk aversion incentive theory behavioral economics decision making reward structures Mood cautious analytical pragmatic Type observation advice When to use this quote - investment decisions - entrepreneurial ventures - career choices - insurance purchasing - policy design Key Concepts risk reward motivation probability Practical Applications - designing compensation packages - structuring investment products Questions to Reflect On - How does perceived risk affect willingness to act? - What mechanisms can align risk and reward? ★ ★ ★ ★ ★ No ratings yet [Aversion](https://sms4smile.com/quotes/about/aversion/) [Aversion Risk](https://sms4smile.com/quotes/about/aversion-risk-936079/) [College](https://sms4smile.com/quotes/about/college/) [Customer](https://sms4smile.com/quotes/about/customer/) [Economics](https://sms4smile.com/quotes/about/economics/) [Higher](https://sms4smile.com/quotes/about/higher/) [Higher Risk](https://sms4smile.com/quotes/about/higher-risk-936082/) [Jump](https://sms4smile.com/quotes/about/jump/) [Me](https://sms4smile.com/quotes/about/me/) [Mean](https://sms4smile.com/quotes/about/mean/) [Means](https://sms4smile.com/quotes/about/means/) [Most](https://sms4smile.com/quotes/about/most/) [People](https://sms4smile.com/quotes/about/people/) [Possible](https://sms4smile.com/quotes/about/possible/) [Professor](https://sms4smile.com/quotes/about/professor/) [Professors](https://sms4smile.com/quotes/about/professors/) [Rewarded](https://sms4smile.com/quotes/about/rewarded/) [Rewarded Risk](https://sms4smile.com/quotes/about/rewarded-risk-936080/) [Risk](https://sms4smile.com/quotes/about/risk/) [Risk Higher](https://sms4smile.com/quotes/about/risk-higher-936081/) [Take](https://sms4smile.com/quotes/about/take/) [Which](https://sms4smile.com/quotes/about/which/) ## Related quotes > [The higher the risk, the higher the reward.](https://sms4smile.com/quotes/jon-jones/the-higher-the-risk-the-higher-the-reward/) [Jon Jones](https://sms4smile.com/quotes/author/jon-jones/) > [“Those whom even love cannot shake from their habitual aversion to risk and inertia are those who are truly unredeemable.”](https://sms4smile.com/quotes/cristina-nehring/those-whom-even-love-cannot-shake-from-their-habitual-aversion-to/) [Cristina Nehring](https://sms4smile.com/quotes/author/cristina-nehring/) > [Some people feel affronted when something they thought to be true doesn't happen. 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You do things your way well enough, for long enough, you'll get rewarded.](https://sms4smile.com/quotes/sami-zayn/i-m-an-idealist-you-do-things-your-way-well-enough-for-long-enough/) [Sami Zayn](https://sms4smile.com/quotes/author/sami-zayn/) > [It's not like basketball, football or rugby, where they judge you on potential. 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Listen to Paul Graham and others…](https://sms4smile.com/quotes/michael-arrington/if-you-want-to-build-a-startup-that-has-a-good-chance-of-succeeding/) [Michael Arrington](https://sms4smile.com/quotes/author/michael-arrington/) [Explore all 56 Michael Arrington quotes ](https://sms4smile.com/quotes/author/michael-arrington/) ## More Aversion quotes > [And indeed nothing but the most determined scepticism, along with a great degree of indolence, can justify this aversion to metaphysics. For if truth…](https://sms4smile.com/quotes/david-hume/and-indeed-nothing-but-the-most-determined-scepticism-along-with-a/) [David Hume](https://sms4smile.com/quotes/author/david-hume/) > [Society everywhere is in conspiracy against the manhood of every one of its members. The virtue in most request is conformity. 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Reeves](https://sms4smile.com/quotes/author/douglas-b-reeves/) > [Value investing is risk aversion.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-risk-aversion/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [In my schoolboy days I had no aversion to slavery. I was not aware there was anything wrong about it. 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