Purchasing Negative EV a Good Deal in Terms of the Lottery?
Over the years in the STT Forum there has been a lot of discussion about whether or not you should pass on +ev situations if you belief it will keep you from taking advantage of an even higher opportunity later. Coupled with taking -ev situations if you belief it is the least ev spot you are likely to find. This made me wonder about the lottery.
I have always heard that the lottery is a bad bet because it is highly -ev. But the cost per unit is really low and irrelevant until it cumalates. This is especially true when related to the amount of the jackpot, however remote.
Now based upon the basic principle that it is easier for a Billionaire to make another million compared to a millionaire, which in turn is also exponentially greater than of a thousandaire or hundredaire.
Because this is the case is it that the later ability to more easily gain addtional monies offset the initial negative investment of the lottery? What would the proportions have to be? Are there any poker situations where the money would be deep enough for this to oocur as well? (This last one I remember debating a while ago but dont remember if there was any consensus or not.)
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