Lotteries and regret minimization

JDN 2456304 EDT 18:20

 

It's long been a mystery in economic decision theory: Why do people play the lottery? Aren't they risk-averse? They seem risk-averse when they buy insurance, but then when they play the lottery they seem massively risk-seeking. So what's going on?
Well, I asked my mother why she plays the lottery, and she explained it thus: "I'd feel terrible if my numbers came up and I hadn't played." This reminded me of a principle in decision theory that doesn't get a lot of at...