2 ms·
That's not a market at all. That's a $198,000,000 giveaway.
by vinceguidry 11y ago
That's not a market at all. That's a $198,000,000 giveaway.
- xixi77 11y agoWell, not quite -- if odds of winning are in fact around 1 in 200MM or less, there is no market failure here. Their point would still stand if they sold 100MM tickets though, so as not to confuse the two issues (ie. the notional amount and the expected value), perhaps it would have been a better example that way.
- AnimalMuppet 11y agoOnly if someone is guaranteed to win the big prize.