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> The expected value of early stage investing is certainly higher than lotteries in the US. That’s arguable. State lotteries are highly regulated and transpar
by CPLX 8y ago
> The expected value of early stage investing is certainly higher than lotteries in the US.
That’s arguable.
State lotteries are highly regulated and transparent and typically return 50% of their capital to participants.
- elamje 8y agoThat’s fair. For the overall game you can expect to lose 50% though, with a handful of outsized windfalls going to 1/1000000 people. In principle it’s more about why a poor person can access lotteries but not private investments, not the exact math on E[X]