Welfare Loss on BGMM 2nd Tier Price

Reply #3

Gamma Ray — Thu, 16 May 2002 17:14:03 GMT

Assume Fair Gambling!Payout =$ Bet x1/CombinationsPayout =$ Bet xOddBG 2nd Tier Price Should bePayout =$1 x1/2,179,296Payout =$2,179,296BG MM 2nd Tier Price Should bePayout =$1 x1/2,649,920Payout =$2,649,920BG Corp Adv %=($2,179,296 -$150,000)/$2,179,296=93.117%BG MM Corp Adv %=($2,649,920 -$175,000)/$2,649,920=93.396%Players advantage % is 100% -corp's adv %. As corp's adv % increase, players adv % decrease. Therefore, welfare loss form players to corp.If BG MM didn't ripe you off, corp's adv i... [ More ]

Reply #2

Gamma Ray — Thu, 16 May 2002 16:27:29 GMT

http://www.michigan.gov/lottery/1,1607,7-110-812_813_858---,00.htmlhttp://216.167.122.17/howtoplay/game_instructions.asp2nd TierBG Odd: 1 in 2,179,296BGMM Odd: 1 in 2,649,920BG 2nd Price: $150,000BGMM 2nd Price: $175,000

Reply #1

Guest — Thu, 16 May 2002 16:15:32 GMT

I don't know what you are talking about with welfare and tiers etc.

Welfare Loss on BGMM 2nd Tier Price

Gamma Ray — Thu, 16 May 2002 15:49:12 GMT

% Increase in BGMM 2nd tier price is lower than the % increase in odds