It Is Generally Well-Known That Buying Lottery Tickets Do Not

Multiple Choice

It is generally well-known that buying lottery tickets do not make sense since the expected value of the lottery ticket is typically less than the price we pay for the ticket. One way to rationalize the act of buying such tickets is to appeal to:

A) The fact that people tend to over-estimate small probabilities.
B) The endowment effect.
C) The conjunction fallacy.
D) Preference reversals.