Jacking Up the Jackpot: Are Lotto Consumers Fooled by Annuity Payments?
AbstractState lotteries typically pay lotto jackpot winners with annuity payments over a 20- to 30-year period. Because lottery associations advertise the jackpot to be the nominal sum of these payments, lottery associations can increase the size of the advertised jackpot simply by increasing the annuity length. Because ticket sales increase with the size of the advertised jackpot, longer annuity lengths should lead to higher ticket sales. The results suggest that lotto players are not fooled by this sleight of hand so that lottery associations cannot increase revenues by artificially inflating the advertised jackpot in this manner.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by in its journal Public Finance Review.
Volume (Year): 31 (2003)
Issue (Month): 5 (September)
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Victor A. Matheson & Kent R. Grote, 2003.
"In Search of a Fair Bet in the Lottery,"
Department of Economics Working Papers
2003-16, Department of Economics, Williams College.
- Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
- Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: A Survey of the Literature," Working Papers 1109, College of the Holy Cross, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.