Something for nothing: A model of gambling behavior
Gambling is an ancient economic activity, but despite its universality and importance, no single explanation for the demand for gambles has gained ascendance among economists. This paper suggests that the demand for gambles is based on the ability to obtain "something for nothing." That is, the gain from gambling is not merely additional income, but additional income for which the gambler does not need to work. Thus, to fully understand gambling behavior, it must be placed in a labor supply context. The theory is tested empirically using the Survey of Gambling in the U.S. Support for the theory is found.
Volume (Year): 37 (2008)
Issue (Month): 6 (December)
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/620175|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Conlisk, John, 1993. " The Utility of Gambling," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 255-75, June.
- Raymond D. Sauer, 1998. "The Economics of Wagering Markets," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2021-2064, December.
- Eden, Benjamin, 1979. "An Expected Utility Function for the Insurance Buying Gambler," Review of Economic Studies, Wiley Blackwell, vol. 46(4), pages 741-42, October.
- Ng Yew Kwang, 1965. "Why do People Buy Lottery Tickets? Choices Involving Risk and the Indivisibility of Expenditure," Journal of Political Economy, University of Chicago Press, vol. 73, pages 530.
- Harry Markowitz, 1952. "The Utility of Wealth," Journal of Political Economy, University of Chicago Press, vol. 60, pages 151.
- de la Vina, Lynda & Bernstein, David, 2002. "The impact of gambling on personal bankruptcy rates," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(5), pages 503-509.
- Roger Hartley & Lisa Farrell, 2002.
"Can Expected Utility Theory Explain Gambling?,"
American Economic Review,
American Economic Association, vol. 92(3), pages 613-624, June.
- Roger Hartley & Lisa Farrell, 1998. "Can Expected Utility Theory Explain Gambling?," Keele Department of Economics Discussion Papers (1995-2001) 98/02, Department of Economics, Keele University.
- Lisa Farrell & Roger Hartley, . "Can Expected Utility Theory Explain Gambling?," Discussion Papers in Public Sector Economics 00/8, Department of Economics, University of Leicester.
- Melissa Schettini Kearney, 2002.
"State Lotteries and Consumer Behavior,"
NBER Working Papers
9330, National Bureau of Economic Research, Inc.
- Machina, Mark J, 1987. "Choice under Uncertainty: Problems Solved and Unsolved," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 121-54, Summer.
- Kim, Young Chin, 1973. "Choice in the Lottery-Insurance Situation Augmented-Income Approach," The Quarterly Journal of Economics, MIT Press, vol. 87(1), pages 148-56, February.
- Dowell, Richard S & McLaren, Keith R, 1986. "An Intertemporal Analysis of the Interdependence between Risk Preference, Retirement, and Work Rate Decisions," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 667-82, June.
- Dobbs, Ian M, 1988. "Risk Aversion, Gambling and the Labour-Leisure Choice," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(2), pages 171-75, May.
- Chris Starmer, 2000. "Developments in Non-expected Utility Theory: The Hunt for a Descriptive Theory of Choice under Risk," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 332-382, June.
- Hakansson, Nils H, 1970. "Friedman-Savage Utility Functions Consistent with Risk Aversion," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 472-87, August.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279.
When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:37:y:2008:i:6:p:2492-2504. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.