[Tomminn]

The parent is correct, and shouldn't be downvoted IMO. If you set the max payout to world gdp of ~$100 trillion, you get an expected value of ~$50 for the game. So people are actually calculating expected value correctly with their intuition. It's just that in their instinctive calculation they're also making better assumptions about reality than mathematicians do.

[plmu]

Indeed, it is one of the proposed solutions as listed in the corresponding wikipedia article on the St. Petersburg paradox. There is a table with quite low expected values, mapping the wealth of the bank to the expected value.