Buying a Dream: Alternative Models of Demand for Lotto
Year: 2002
Type: article
Abstract: Existing lotto demand models utilize effective price, computed as the face value of a ticket minus the expected value of prize money per ticket, as their primary explanatory variable. By contrast, this article proposes a key role for consumption benefit or “fun” in the demand for gambling in general and lotto demand in particular. It develops an alternative model of lotto demand that focuses on the maximum possible prize. When this is tested against the traditional model using data from the U.K. National Lottery, we find that jackpot considerations exert an influence over and above that of variations in effective price.
Source: Economic Inquiry
DOI: 10.1093/ei/40.3.485
Authors: David Forrest, Robert Simmons, Neil Chesters
Institution: University of Salford
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2116905262