I don’t understand how you can apply the rubric “bias” to their value.
As I see it, Eliezer is not applying the term “bias” to the value of lotteries, rather, to people’s own evaluations of how likely they are to win. These evaluations are scope insensitive, as is the first sentence of your comment, as Eliezer points out in the follow-up post.
It is a separate question whether it is good that people are scope insensitive, or that people play the lottery. Eliezer says no:
If not for the lottery, maybe they would fantasize about going to technical school, or opening their own business, or getting a promotion at work—things they might be able to actually do, hopes that would make them want to become stronger.
As I see it, Eliezer is not applying the term “bias” to the value of lotteries, rather, to people’s own evaluations of how likely they are to win. These evaluations are scope insensitive, as is the first sentence of your comment, as Eliezer points out in the follow-up post.
It is a separate question whether it is good that people are scope insensitive, or that people play the lottery. Eliezer says no: