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

David Peel

Economics Letters, 2010, vol. 109, issue 3, 161-163

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.

Keywords: Lottery; sales; Cumulative; prospect; theory; Jackpot; size; Irrationality (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (4)

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