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January 22, 2009



"those (such as these Floridans) raised under capitalism": or in Cuba?


Are they real? If so, I thoroughly approve...


This is really just a comment on the rationality of people who win lotteries. Since those people are often risk-loving or innumerate, it is hardly surprising that they are bad decision makers.

As for the rest of us, the external validity of this study is small.


I believe you're forgetting selection bias inherent in the sample - given the odds involved ( http://tinyurl.com/magic-jackpot ), the rational are far less likely to consider even playing the lottery, therefore lottery winners are far more likely to be drawn from the ranks of irrational consumers.

As for the Czechs apparent rationality - one wonders how many of them even realized they were "playing?"


It might not be irrational to play the lottery. Sure it is in pure expected value terms. But it's possible that the teeny chance of changing one's life is worth a dollar or two that you'll not miss. What's odd is that this study suggests your life doesn't change as a result.
But even if you grant that lottery players are irrational, what's significant is that people who are irrational over small sums are also irrational over bigger ones. This is not a trivial fact.

Alderson Warm-Fork

You might want to look at the mental accounting link - it's to stumblingandmumbling/en.wikipedia...


Maybe lottery causes bankruptcy.
Let's say you get 100.000 $. It is good news, but no money enough to live of its interest (not to mention you gave it to Madoff). So, what do you do? You start some new bussiness, something that you have always dreamed of but wich you don't have any experience about, or you have as an employee, not as a manager. After a few time, the dream is over. You have lost your money and you are trying to get your old work back.
Here in Spain was very common that people who got money from their redundancy pay (45 days/year) opened a bar. Most of them were closed in 2 years. I know because they were my customers.


Just because all consumers aren't rational isn't an argument for paternalism.

People going bankrupt is a good thing. It teaches them and the rest of society an importan lesson.


As Orgega says, some people do invest their win "for their future" but they make risky (or plain bad) investments that go wrong. My hunch is that windfall money is easier risked that the money that's been sweated for.

Yoe Tike

Speaking of Chance, Vegas is all so home of the most and largest trade shows for business in the world http://TradeShowsVegas.com Twice each year just the Fashion business brings several hundred thousand people to Vegas http://FashionWeekVegas.com They also gamble but these are business people

Las Vegas Hotel

Hey all.well i know that Vegas is all so home of the most and largest trade shows for business in the world. thats why it a nice in intersting city!

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