4 ms·
It's the same with the lottery. If you understand that the cash expected value is lower than the cost of the ticket, but you get some value from having "played"
by pottertheotter 6y ago
It's the same with the lottery. If you understand that the cash expected value is lower than the cost of the ticket, but you get some value from having "played" and the net is at least equal to the price of the ticket, it's not irrational to buy a lottery ticket.
- pdonis 6y agoThis is true, but the kind of value being provided is different. Peace of mind is not the same thing as entertainment.
- brlewis 6y agoMaybe you all can agree that insurance and lottery are the same in that only a fraction of consumers come out ahead, and are opposites in terms of smart vs. stupid.
- pdonis 6y ago> Maybe you all can agree that insurance and lottery are the same in that only a fraction of consumers come out ahead Only a fraction of the consumers come out ahead if we only consider monetary value. But the whole reason insurance and the lottery exist in the first place is that there are other kinds of value besides monetary value. In the case of insurance, it's peace of mind. In the case of the lottery, it's whatever entertainment value comes from being able to visualize yourself winning, even if your chances of actually doing so are tiny.