> a friend called the state lottery a tax on stupidity. I'm pretty sure that virtually all of the stupid people buying a lottery tickets understand that lotter

> a friend called the state lottery a tax on stupidity. I'm pretty sure that virtually all of the stupid people buying a lottery tickets understand that lottery tickets have a negative expected value. But so does insurance, and yet people rationally buy that. Higher moments matter. When you have wealth you pay to reduce variance. When you lack wealth you pay to increase it.