Is Lottery Demand Elasticity a Reliable Marketing Tool? Evidence from a Game Innovation in Greece

In Greece a lotto game has been offered since 1990 whereas a new version was introduced seven years later with a clearly more skewed payoff. This paper aims to analyze whether demand estimates from the original game help explain the subsequent innovation and to assess, in that sense, the reliability of demand estimates as a marketing tool. It thus responds to the fear that lottery demand estimates from transitory prize variations might not be indicative for permanent demand changes such as, for example, an innovation in lottery odds and/or prizes