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On the disclosure of ticket sales in charitable lotteries

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  • Damianov, Damian S.
  • Peeters, Ronald

Abstract

We show that a policy of disclosing the ticket sales during a fundraising lottery raises total revenue when there are more than two bettors. The optimal timing of the disclosure is when about half of the players have purchased lottery tickets.

Suggested Citation

  • Damianov, Damian S. & Peeters, Ronald, 2017. "On the disclosure of ticket sales in charitable lotteries," Economics Letters, Elsevier, vol. 150(C), pages 73-76.
    • Handle: RePEc:eee:ecolet:v:150:y:2017:i:c:p:73-76
    DOI: 10.1016/j.econlet.2016.11.012
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    References listed on IDEAS

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    1. Varian, H.R., 1989. "Sequential Provision Of Public Goods," Papers 89-17, Michigan - Center for Research on Economic & Social Theory.
    2. John Morgan, 2000. "Financing Public Goods by Means of Lotteries," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 761-784.
    3. Damianov, Damian S., 2015. "Should lotteries offer discounts on multiple tickets?," Economics Letters, Elsevier, vol. 126(C), pages 84-86.
    4. Franke, Jörg & Leininger, Wolfgang, 2014. "On the efficient provision of public goods by means of biased lotteries: The two player case," Economics Letters, Elsevier, vol. 125(3), pages 436-439.
    5. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
    6. Linster, Bruce G, 1993. "Stackelberg Rent-Seeking," Public Choice, Springer, vol. 77(2), pages 307-321, October.
    7. Avinash Dixit, 2008. "Strategic Behavior in Contests," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 431-438, Springer.
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    Keywords

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    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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