4 ms·
What is the value in buying a lottery ticket? The expected value of the ticket itself is negative, relative to its purchase price. So the buyer gets additiona
by RickHull 4y ago
What is the value in buying a lottery ticket? The expected value of the ticket itself is negative, relative to its purchase price. So the buyer gets additional value from the "little thrill" of the purchase and observing the results.
With extra dip sauce, you clearly value the sauce more than the money in your pocket. The dip tastes good, has calories, and maybe some bad health side effects.
Lotteries lack fundamental value, and the "little thrill" often turns into a bad health side effect.
That said, adults should be free to spend their money how they like. Those giving advice are worried that vulnerable people will get sucked into a "trap", like a gambling addiction.
- galaxyLogic 4y agoGambling is like alcohol you get a high and then a hangover. The effects of gambling however last longer. What is lost is lost forever, it doesn't increase your odds of winning in the future.
- rdlw 4y agoI don't really agree with this reasoning, since to make it a fair comparison wouldn't you have to ignore any pleasure you get from the dip? A lottery ticket gets you a "little thrill" of the possibility of winning, and the dip gets you a "little thrill" of having your sense of taste stimulated. As you said, the other effects may be negative just as easily as they can be positive. The framing of dip as having fundamental value because it tastes good only seems to make sense if you already like dip and don't like gambling. Possibly reinforced by some perception that feelings are bad and ought to be ignored, while hard facts like calorie counts and chemical reactions are real and admissible as evidence (this is not meant as a personal attack, it's just something that our society often reinforces). What if we start on the opposite side of the issue than you did? You get "What is the value in buying dip? The expected value of the dip itself is negative, relative to its purchase price (the expected value is zero, if you acknowledge that extra calories are not inherently good or bad). So the buyer gets additional value from the 'little thrill' of the eating and tasting of the dip. "With a lottery ticket, you clearly value the experience of having the ticket more than the money in your pocket. Gambling feels good, creates the possibility of financial gain, and maybe has some bad side effects. "Junk foods lack fundamental value, and the 'little thrill' often turns into a bad side effect (eating disorders)." Of course, it's possible for dip to have a much higher expected value if you need those calories, but I don't think that's what we're talking about here. So what makes the sensation of enjoying how something tastes have 'fundamental value' and the sensation of enjoying the possibility of financial gain not?
- LanceH 4y agoMathematically, selling used, losing tickets at a sufficient discount would have a higher expected value (also negative). Everyone not selling those would consider these to not be fun at all. So there is some value in "live" lotto tickets. Personally, I view the odds of finding a winning ticket to be only slightly less than buying the winning one, so that's how I play.
- kzrdude 4y agoWhat's the value of drinking another beer? Past a certain number, it's certainly also negative.
- ectopod 4y agoAfter enough rollovers lottery tickets sometimes have a positive expected value. Even so, I'll still only buy one.
- AnIdiotOnTheNet 4y agoI only play the lottery as a form of insurance. If my work colleagues are starting a pool, I'll get in because on the extremely unlikely chance that they win big I don't want to be the guy who has to come in to work the next day.