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Lottery participants and revenues

25 Oct 2011

Government sponsored lotteries operate around the world. Their popularity has grown substantially over time. Legal lottery gambling generates significant public revenue, much of it from the lower part of the income distribution. Lottery is almost always an unfair bet, so explaining the purchase of lottery tickets by risk-averse consumers has long challenged economic theory. Lotteries can be analyzed from the perspective of public finance, as source of public revenue, or consumer theory, as a consumer commodity. We survey the state of economic research on lotteries from both perspectives, focusing on the key empirical findings.
economics economy psychology gambling lotteries mathematics prices demand tax implicit tax price elasticity of demand game expected utility hypothesis utility casino and gambling expected utility lottery jackpot gaming and lottery lotto bets prospect theory lottery ticket football pools national lottery (united kingdom) national lottery (ireland) effective price conscious selection

Authors

Perez, Levi

Pages
37
Published in
Canada

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