Post

Games ranked:

stock market >> racetrax > pick 3 > keno >> big prize/low prob lottos

Stocks are like dealing with near certain events, the big/prize/low prob lottos are so unlikely I can't even come up with a way to reason about them.

1 solution for the incredibly improbably games is to use "logarithmic utility" of money, so you are paying log(1) to win log(10x10^10), but when the probabilities are 1 in 10x10^20, this isn't something you can expect to see in one life. It is some variant of "impossible"