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Media exposure and individual choices: Evidence from lottery players

Author

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  • De Paola, Maria
  • Scoppa, Vincenzo

Abstract

To what extent individual choices are influenced by media exposure? We try to provide evidence on this aspect considering how the sales of lotto tickets are determined by the size of the top prize (the jackpot) compared to the amount of attention that media devote to the game. We use data on the Italian SuperEnalotto (2003–2010) and estimate ticket sales in relation to the jackpot size and to several measures of lotto media coverage. To take into account that media attention may be affected by the amount of tickets sold we instrument media coverage with the availability of other newsworthy materials (sport events and disasters). It emerges that media attention to the game is inversely related to the availability of other news. Two-Stage-Least Squares Estimations show that, given the jackpot size, players are affected by media exposure as they spend more on lotto when media attention to the game is higher.

Suggested Citation

  • De Paola, Maria & Scoppa, Vincenzo, 2014. "Media exposure and individual choices: Evidence from lottery players," Economic Modelling, Elsevier, vol. 38(C), pages 385-391.
  • Handle: RePEc:eee:ecmode:v:38:y:2014:i:c:p:385-391
    DOI: 10.1016/j.econmod.2014.01.006
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    References listed on IDEAS

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    Cited by:

    1. repec:taf:apeclt:v:23:y:2016:i:18:p:1312-1316 is not listed on IDEAS
    2. Silvia Giacomelli & Marco Tonello, 2015. "Measuring the performance of local governments: evidence from mystery calls," Questioni di Economia e Finanza (Occasional Papers) 292, Bank of Italy, Economic Research and International Relations Area.
    3. repec:spr:italej:v:3:y:2017:i:1:d:10.1007_s40797-016-0043-x is not listed on IDEAS
    4. Lucia Rizzica & Marco Tonello, 2015. "Exposure to media and corruption perceptions," Temi di discussione (Economic working papers) 1043, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    Media exposure; Psychology and economics; Lottery;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D1 - Microeconomics - - Household Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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