On lottery sales, jackpot sizes and irrationality: A cautionary note
AbstractJackpot 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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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 109 (2010)
Issue (Month): 3 (December)
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Web page: http://www.elsevier.com/locate/ecolet
Lottery sales Cumulative prospect theory Jackpot size Irrationality;
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