The classic explanation of expected utility vs. expected return deals with hypothetical lottery tickets that have an positive expected return but not positive expected utility.
Okay. Sorry. What I meant was, “Since lotteries always have a negative expected return, I think that maybe the explanations you are talking about are directed at people who think that the lottery has an expected positive return because they don’t do the math.” Which you just answered. I was not familiar with this classic explanation.
Would you STOP IT? For the love of Cthulhu!
The classic explanation of expected utility vs. expected return deals with hypothetical lottery tickets that have an positive expected return but not positive expected utility.
Okay. Sorry. What I meant was, “Since lotteries always have a negative expected return, I think that maybe the explanations you are talking about are directed at people who think that the lottery has an expected positive return because they don’t do the math.” Which you just answered. I was not familiar with this classic explanation.