I'm confused by this analogy also. Is the article saying that NASA is spending money on things that are negative EV? When it comes to these space exploration things that sounds like a subjective value judgment rather than an objective cost/benefit type thing.
Are they saying this sort of lottery has positive EV, just that the expectation is small? Then the Kelly-optimal course of action is indeed to split one's salary between it and the pension fund -- the exact ratio takes a more ambitious estimation of the EV, of course. But the idea to split money between safe, sure returns and moonshots is not a flawed idea at all.
Are they saying this sort of lottery has positive EV, just that the expectation is small? Then the Kelly-optimal course of action is indeed to split one's salary between it and the pension fund -- the exact ratio takes a more ambitious estimation of the EV, of course. But the idea to split money between safe, sure returns and moonshots is not a flawed idea at all.