Peel, David (2010) On lottery sales, jackpot sizes and irrationality: A cautionary note. Economics Letters, 109 (3). pp. 161-163. ISSN 0165-1765
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Jackpot size has a greater impact than expected price as a determinant of lottery sales suggesting that agents exhibit irrational lotto mania. We demonstrate why this conclusion is problematical by considering the reduced form obtained if agents are described by Cumulative Prospect Theory.
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