At the risk of injecting something other than pure logic here, it's important to note that behavior is not necessarily linked to probable outcomes. (or why would anyone ever smoke given the probable outcome!) .

Rather the principle that governs this type of behavior may be what economists call the 'marginal utility of a resource.' In this case the immediate benefit of spending that dollar on a lottery ticket, (the thrill, excitement or the potential of winning), is greater than any other use or benefit derived from that dollar, (i.e. a cup of coffee, a danish or slurpee). Therefore the marginal utility of the lottery, (the thrill, etc.) provides greater value than all other considered alternatives.

For each individual the alternatives as well as the the perceived benefits are different. Therefore different people will make different choices for that one dollar investment. And each choice is correct given that particular individual's marginal utility and their perceived benefit for one dollar.

In this way the behavior is considered rational, (based on defined, understandable reasoning), though not logical, (based on accepted, probabilistic outcomes). And when it gets over $25 million, I'm in for a buck regardless of the odds.

Jim Sunderhauf, Analytic Resources 1-888-399-4990 jim@analyticjobs.com