Chew, Soo Hong; Tan, Guofu - In: Review of Economic Studies 72 (2005) 4, pp. 1009-1029
This paper studies the market for monopolistically supplied sweepstakes. We derive equilibrium demands for fixed-prize and variable-prize sweepstakes and determine the profit-maximizing prize level and pay-out ratio respectively. It can be profitable to offer each type of sweepstake when there...
