http://www.lomolink.com/the-uncertainty-premium

How much money would you be prepared to pay for a “5 star” hotel that had a 50% chance that it would have electricity and 50% chance of you being left in a dark room?

Certainly not more than you need to.

After spending the night, the question to ask is who rated this hotel??

Heres the interesting thing, how much extra would you be willing to pay for a hotel that was guaranteed to always have electricity, always check in on time, or a hotel that was always guaranteed to give you satisfaction? Suddenly, the rating of the hotel doesn’t matter so much as the amount of money paid. That’s because we’re often willing to pay a significant premium to avoid risk.

When you “patronize” the manager of the hotel and he promises you that the price is right you will probably have no choice but to accept – along with his promise of certainty. Doesn’t work if there is a “sometimes” involved.