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Doug_S.2 comments on New Improved Lottery - Less Wrong

41 Post author: Eliezer_Yudkowsky 13 April 2007 11:42PM

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Comment author: Doug_S.2 14 April 2007 07:40:44PM 0 points [-]

Surely one could easily replicate this "lottery" by buying path-dependent options with low exercise probability on the financial markets. People are not doing this, so this service must be less appealing than it intuitively seems.

I wonder what the odds actually are on "striking it rich" in a short period of time by treating financial markets as a gambling game. Is it better or worse than, say, the roulette wheel in a casino? If you bet $30,000 on a single number in a roulette wheel, you have a one in 38 chance of getting a 35x payout of $1,050,000. Can the financial markets give you a better than 1 in 38 chance of turning $30,000 into over $1,000,000 within a year before you lose your initial stake?