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Many states run lotteries of various kinds. One of the most popular is a daily number game where an individual buys a $1 ticket with

Many states run lotteries of various kinds. One of the most popular is a daily number game where an individual buys a $1 ticket with a number of their choosing between 000 and 999. The payoff is typically $500. Would a strictly risk-neutral person buy such a ticket? What payoff would ensure that at least some people who are risk averse would buy a ticket?

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