On lottery sales, jackpot sizes and irrationality: A cautionary note

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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Abstract

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.

Item Type:
Journal Article
Journal or Publication Title:
Economics Letters
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/aacsb/disciplinebasedresearch
Subjects:
ID Code:
55023
Deposited By:
Deposited On:
13 Jun 2012 10:08
Refereed?:
Yes
Published?:
Published
Last Modified:
10 Jul 2020 02:39