Demand for Lottery Products: A Cross-Country Analysis
Varieties of lottery games are played regularly in more than half of the world’s countries. When considering the probability of winning a lottery jackpot, we have a sense of the illogicality in buying a lottery ticket. This begs the question, why do people buy lottery products? This paper investigates the socio-economic and demographic features that help to explain the behavioural trend of lottery product purchasing throughout the world. With a multivariate linear regression analysis, this study uses macroeconomic data and qualitative variables to explain the variation of a country’s per-capita lottery sales. Some very interesting results were obtained. For example, the higher a country’s level of education, percentage of males and Christians, the higher are the lottery sales. The relationship between lottery sales and per-capita GDP is an inverted U: lottery sales increase simultaneously with increases in per-capita GDP up to a point and then start to decrease. These results are of interest because they suggest a link between certain socio-economic and demographic characteristics and consumer behaviour and may give a boost to the use of these characteristics in consumer research.
|Date of creation:||Jul 2008|
|Contact details of provider:|| Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL|
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC
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.:
- Brad M. Barber & Terrance Odean, 2001. "Boys will be Boys: Gender, Overconfidence, and Common Stock Investment," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 261-292.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279-279.
- Melissa Schettini Kearney, 2002.
"State Lotteries and Consumer Behavior,"
NBER Working Papers
9330, National Bureau of Economic Research, Inc.
- Thomas Garrett, 2001. "An International Comparison and Analysis of Lotteries and the Distribution of Lottery Expenditures," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(2), pages 213-227.
- David Giacopassi & Mark W. Nichols & B. Grant Stitt, 2006. "Voting for a Lottery," Public Finance Review, SAGE Publishing, vol. 34(1), pages 80-100, January.
- Charles T. Clotfelter & Philip J. Cook, 1989. "The Demand for Lottery Products," NBER Working Papers 2928, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ise:isegwp:wp332008. 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: (Vitor Escaria)
If references are entirely missing, you can add them using this form.