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Under certain circumstances, playing a lottery is a completely rational idea. Even if mathematical expectation of a win is negative, taking into account utility
by EVa5I7bHFq9mnYK 4y ago
Under certain circumstances, playing a lottery is a completely rational idea. Even if mathematical expectation of a win is negative, taking into account utility function can turn it positive. After all, mathematical expectation of buying insurance is negative too, but we don't talk down on those who buy insurance.
- WalterBright 4y agoI don't buy collision insurance on my car. Haven't for 40 years, because my car was totaled 40 years ago and the insurance payout was so meager I realized that self-insurance was a far better deal. Buying insurance on appliances and other devices is a waste of money, too.