Exercise 12.8 - Lottery Lower Limits. Evy and Patty are each contemplating whether or not to buy a lottery ticket for $1 that generates a gain of $G with a one- in-a-million chance. Normalize their initial wealth to zero. Buying a lottery ticket is therefore equivalent to choosing the lottery L = ($G-1,0.000001; -$1,0.999999). Both Evy and Patty use the same value function v(), pictured in Figure 12.1, to evaluate potential gains and losses: if x 0 (i.e., x is a gain) -2.25 x (-x). if x