How many lottery tickets to buy? (Q1088869)
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scientific article; zbMATH DE number 4001814
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| English | How many lottery tickets to buy? |
scientific article; zbMATH DE number 4001814 |
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How many lottery tickets to buy? (English)
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1987
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We investigate the optimal number of tickets an expected-utility- maximizing individual who participates in a lottery will buy. We show that the expected utility is not always unimodal in the number of tickets. We also show that a risk-averse individual will not buy more than one ticket. (S)he will be willing to own a share in several tickets only if that share is sufficiently small.
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optimal number of tickets
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lottery
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expected utility
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0.7205485105514526
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0.7027156949043274
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0.6707121729850769
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