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March 28, 2012 7:54 pm at 7:54 pm
#865052
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popa_bar_abba
Participant
I suppose the question I am asking, is whether we have “risk preference” towards the risk of winning a lottery.
I think we do. I’m just not sure how to quantify it. It doesn’t make much sense that dollars are worth more when you have a lot–we usually assume the opposite.