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Media Exposure And Individual Choices: Evidence From Lotto Players

Author

Listed:
  • Maria De Paola
  • Vincenzo Scoppa

    (Dipartimento di Economia e Statistica, Università della Calabria)

Abstract

To what extent individual choices are influenced by media exposure? We try to provide evidence on this issue 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 tickets 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 material (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 spend more on lotto when media attention to the game is higher.

Suggested Citation

  • Maria De Paola & Vincenzo Scoppa, 2011. "Media Exposure And Individual Choices: Evidence From Lotto Players," Working Papers 201102, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    • Handle: RePEc:clb:wpaper:201102
    as

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    File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP02_2011.pdf
    File Function: First version, 2011-02
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    References listed on IDEAS

    as
    1. Paul C. Tetlock, 2007. "Giving Content to Investor Sentiment: The Role of Media in the Stock Market," Journal of Finance, American Finance Association, vol. 62(3), pages 1139-1168, June.
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    More about this item

    Keywords

    Media Influence; Media Exposure; Psychology and Economics; Lottery; Instrumental Variables;
    All these keywords.

    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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