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How else would you explain why people play the lottery? It's well-known that the expected value of any given ticket is negative (except in rare cases), unless y
by dandelany 5y ago
How else would you explain why people play the lottery? It's well-known that the expected value of any given ticket is negative (except in rare cases), unless you place some entertainment/fantasy value on playing.
- staticman2 5y agoWhy would you think lottery players are using your "expected value" model to decide whether to buy tickets? If I believe "I'm lucky" the expected value is positive.
- mbg721 5y agoThe expected value of insurance is also negative (it has to be, or else insurance companies wouldn't be able to pay their expenses), but people buy it for the same reason: the rare payoff is life-altering, while the much more common cost doesn't make much difference in comparison.