On the probability of winning a lottery with a random number of competitors
This article is concerned with models in which an agent faces a lottery with <italic>j</italic> other agents for a prize, so that the probability of winning the prize is 1/(<italic>j</italic> + 1), and where <italic>j</italic> is stochastic. After describing four different situations where such a lottery is present, we construct the expected value of the probability of winning such a lottery and prove a theorem that presents the expected value in a simpler form. We then give an example of the theorem being applied to gain new insights into auction theory.
Year of publication: |
2011
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Authors: | Hogan, Seamus ; Meriluoto, Laura |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 18.2011, 18, p. 1765-1768
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Publisher: |
Taylor & Francis Journals |
Saved in:
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