Showing 1 - 10 of 163
The paper proposes a simple and innovative methodology for measuring the incidence of gambling expenditure in countries … merging data on the geographical location of gambling outlets, together with residents' socio-economic and demographic … results and yields a measure of -0.42, which implies that the implicit tax associated with gambling is highly regressive. …
Persistent link: https://www.econbiz.de/10011700247
outlets in Israel for two years (2015-2016), I find that gambling revenue spikes at social security paydays. The estimation …
Persistent link: https://www.econbiz.de/10012064536
We test for skewness preferences in a large set of observational panel data on online poker games (n=4,450,585). Each observation refers to a choice between a safe option and a binary risk of winning or losing the game. Our setting offers a real-world choice situation with substantial incentives...
Persistent link: https://www.econbiz.de/10014486803
We develop interpretable, quantitative indices of the objective and subjective complexity of lottery choice problems that can be computed for any standard dataset. These indices capture the predicted error rate in identifying the lottery with the highest expected value, where the predictions are...
Persistent link: https://www.econbiz.de/10014340230
The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates of the probability of a horse winning - longshots are overbet, while favorites are underbet. Neoclassical explanations of this phenomenon focus on rational gamblers who overbet...
Persistent link: https://www.econbiz.de/10003965888
The means of contest design may include differential taxation of the prize. This paper establishes that, given a revenue-maximizing contest designer who faces a balanced-budget constraint, the optimal taxation scheme corresponding to an all-pay auction is appealing in two senses. First, it...
Persistent link: https://www.econbiz.de/10009488961
We revisit the classical result that financing a pure public good through taxation of private consumption is inefficient. To this standard setup we add a consumption contest in which consumers can win a prize. We show that an appropriately chosen contest - which we call a 'tax lottery' - can...
Persistent link: https://www.econbiz.de/10009742905
This paper shows that households with positional concerns and convex status utility use gambling to attempt … results strongly indicate that households who care about status are more likely to participate in gambling and invest more in … gambling, while they save less. In addition, results regarding socio-economic and demographic characteristics are reported. For …
Persistent link: https://www.econbiz.de/10009724024
We provide a solution to the free-rider problem in the provision of a public good. To this end we define a biased indirect contribution game which provides the efficient amount of the public good in non-cooperative Nash equilibrium. No confiscatory taxes or other means of coercion are used. We...
Persistent link: https://www.econbiz.de/10009706153
Although risk aversion has been used in economic models for over 275 years, the past few decades have shown how higher order risk attitudes are also quite important. A behavioral approach to defining such risk attitudes was developed by Eeckhoudt and Schlesinger (2006), based upon simple lottery...
Persistent link: https://www.econbiz.de/10010431278