Being risk averse

I saw this post on chaostheory and it really made me think - how risk averse are people in general (and me in particular?)

I think trading $1000 for 60% chance of $2000 might make sense, but trading $1000 for 0.06% for $2,000,000 does not, for me. There are two ways to look at this:

1. Expected resulting satisfaction: I will be happy if I win the 2 million, of course. but not a thausand times more. and most likely I'll be disappointed. If I try this 100 times, I will quickly 'learn' that this is too much frustration and not enough (or any) gain

2. Declining value of money: The value of the $10,000 between $100,000 and $110,000 me is quite high, as it would affect my investment.
The value of the difference between $1,000,000 and $1,010,000 is low. Therefore, the value of a dollar is a function of how much I already have, nd declines with wealth (duh?). So $1,000,000 does not really offer twice as much benefit as $500,000 do, just as ten Mars bars do not offer ten times as much benefit as one bar.