Risking it all
Doran Libin
2015-07-06

Examining the risks of trading top players for elite talent such as Connor McDavid
Trading in fantasy hockey is a game of balancing risk with reward. That being the case it is important to understand the nature of risk aversion/risk seeking behavior. Risk aversion is believed to be a common trait that exists in both humans and animals. In humans it is thought to be a trait that has evolved over time to help preserve the species. As such high-risk activities are largely only taken when the possibility of a massive advance is tangible or when resources are scarce. In most circumstance the payoffs of the risk must heavily outweigh the potential costs for humans to take a risk. Thus risk averse behavior can be seen as safety mechanism for self preservation and only when other factors make stability untenable does risk become an option. As such humans naturally remember their losses more than their gains. That is why it usually easier to remember the trades you lost than the trades that you won, it is also why you value the players you have higher than the players you will receive.