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Then instead of spending $120 on the lottery over a year, they could invest ~ $119.40 over the same period, at the end of which they will have $120 which they c

Then instead of spending $120 on the lottery over a year, they could invest ~ $119.40 over the same period, at the end of which they will have $120 which they can put into the lottery. Same result, less money spent. Except that they lack the utility of playing the lottery for an entire year, which is already worth more than $120 to them, as we can see from the fact that they play the lottery in the first place. :)

gjm11 17y ago
I happily concede that if you really enjoy playing the lottery then it can be eminently rational to do it. The person I was replying to wasn't making that argument, but a completely different one: that the utility from the potential winnings outweigh the costs for some poorer people. I think that's monstrously implausible.