I don’t understand the illustrative example for Tail. “An outcome of winning 1M or 3M has variability, but much less tail risk for most people than the possibility of gaining or losing 1M. The variability of the two is the same but the tail risk is different”. Isn’t this an example of “Volume” since the first scenario is always as good or better than the second scenario. I don’t see how it touches on probability of extreme outcomes at all.

The description of Tail talks about a “lower likelihood” of extreme outcomes but in the example scenario is it not implied that the probability of the less favorable outcome is the same, the only difference is the amount?