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A dynamic model of Gambling addiction with social costs: theory and policy solutions

Leonardo Becchetti, Nazaria Solferino () and Maria Elisabetta Tessitore ()
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Nazaria Solferino: Associazione Italiana per la Cultura della Cooperazione e del Non Profit, Postal: P.le della Vittoria, 15, 47121 Forlì, http://www.aiccon.it
Maria Elisabetta Tessitore: Associazione Italiana per la Cultura della Cooperazione e del Non Profit, Postal: P.le della Vittoria, 15, 47121 Forlì, http://www.aiccon.it

No 133-2014, AICCON Working Papers from Associazione Italiana per la Cultura della Cooperazione e del Non Profit

Abstract: We investigate the effects of gambling addiction in a dynamic model in which wellbeing crucially depends on the accumulation of relational goods which is weakened by the consumption of gambling. We outline conditions under which gambling may become addictive leading to a suboptimal equilibrium from a social point of view. We examine the relative effectiveness of different policy solutions (tax on gambling, gambling restrictions) in bridging the distance between the equilibrium without intervention and social optimum.

Keywords: addiction; gambling; social costs (search for similar items in EconPapers)
JEL-codes: D21 L83 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2014-01-14
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Working Paper: A dynamic model of Gambling addiction with social costs: theory and policy solutions (2016) Downloads
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