Cohen: Expected value is the wrong way to evaluate startup acquisition offers
Jason Cohen · This AI Startup Idea Has 500 Million Customers Waiting For It · Feb 23, 2024 · at 17:51
WP Engine founder Jason Cohen explains his 'Two-Box Problem' mental model for founder liquidity decisions.
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“Now what's interesting with the box game is if you're a statistician or you're an economist, what you would say is there's no difference between the two boxes because the expected value of both box is ten million. So they're the same. And my point is, no, they're not. Expected value is not the right way to evaluate the situation.”
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