Re:The rising human cost of sports betting
by JackFr on Monday January 31, 2022 @03:57PM
(#30154216)
Why? Because the expected value is negative?
If that's the heuristic for defining stupid, we better revisit auto insurance, which also has a negative expected value.
On the other hand, maybe variance and skewness (to say nothing of kurtosis) have values (and costs) which a rational analysis needs to consider. Some people might be willing to pay to shed variance, while others might pay to take it on depending on the value of their assets and their time horizon.
If that's the heuristic for defining stupid, we better revisit auto insurance, which also has a negative expected value.
On the other hand, maybe variance and skewness (to say nothing of kurtosis) have values (and costs) which a rational analysis needs to consider. Some people might be willing to pay to shed variance, while others might pay to take it on depending on the value of their assets and their time horizon.