- cross-posted to:
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- cross-posted to:
- [email protected]
General Motors, Ford and other established automakers risk becoming relics if they don’t catch up to Chinese carmakers and technology companies in electric vehicles and self-driving cars.
There’s a limit to the gains from pooling insurance risk. Sure, you gain a lot by going from 1000 people in a pool fo 10000. But 10 million to 20 million? You reach a point where the law of large numbers takes over and adding more people doesn’t produce further gains.
But decreasing the pool will decrease your gains. Self driving cars would greatly decrease the pool while also greatly raising the risk.
Are you familiar with what an asymptote is?