Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 25, 2020 erstellt
Beschreibung:
We quantify the extent to which lottery spending, play timing, game choice, and number selection vary with players' level of income, and how such variations affect their earnings and ticket retailers' revenues. While prior research has shown that poorer consumers spend a higher proportion of their income on lottery tickets, we focus on identifying income-driven differences in consumer lottery decisions on when and how to play and quantifying the impact of these differences on consumers' earnings and retailers' revenues across different income areas. Using both market and transactional lottery data, we find that consumers in low-income areas have a preference for games with lower payouts and are less likely to switch between games with jackpot size changes. Further, we find that players in low-income areas are more likely to choose numbers manually and select popular number combinations; these preferences result in lower expected earnings. Overall, these differences in preferences over lottery play lead to players in low-income areas losing 10% more per ticket than those in high-income areas. Lottery retailers' revenues in poorer areas are 45% lower than for those in higher-income areas, and they earn 0.19% less per ticket, because low-income players prefer games with lower payouts. Our results underscore the need to consider all stages of the consumer decision process when evaluating the economic impact of lotteries on consumers and retailers alike