Regarding your third point lets take a hypothetical lottery where the chances for a $50,000,000 jackpot are 1:100,000,000. Most lottery players would treat the EV as $.50 (actualy most lottery players are too stupid to know what an EV is). However, if they actually had $50,000,000 it would be worth less to them so the EV really should be computed against what the perceived value of the jackpot would be if they actually had that much money. I’ll get back to you on how to calculate “perceived value” as one cannot just go to a billionaire and ask him how much $50,000,000 is worth.
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