There are some individuals who may purchase insurance and play lotteries at the same time.

Question

Quizplus · Accepted Answer

This behavior can be explained by the concept of utility theory in economics, where individuals make decisions to maximize their utility or satisfaction. Purchasing insurance is a risk-averse behavior to protect against potential losses, while playing the lottery is a risk-seeking behavior for the chance of a large gain. Both actions can coexist as they satisfy different aspects of an individual's utility preferences.

There Are Some Individuals Who May Purchase Insurance and Play