Artists and Risks
If average artists would have an above average inclination to take risks, the big prizes in the winner-takes-all art market make the arts even more attractive. Even more youngsters enter the art world and consequently the average income is lower than if these same youngsters had had a more normal inclination to take (or avert) risks.
People have different attitudes when it comes to taking risks. Some spend far more money on insurance than others. They are relatively risk aversive, while others prefer to take risks. So considering the art world’s extremely high prizes it is only natural that youngsters with some artistic talent and with an above-average inclination to take risks will be more likely to enter the arts than other similarly talented candidates who are more risk-aversive.
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