We provide evidence that sellers respond to buyers' belief biases in a collective lottery betting market, by adopting sales strategies which cater to believers in the Hot Hand and Gambler's Fallacies. Lottery players on the buyer side tend to avoid buying tickets which are similar to the...

There has been a long debate on whether the expected utility model can explain lottery purchase decision under uncertainty. The traditional strand of research, named the effective price approach, following the expected utility approach takes the expected loss of each ticket as the lottery price...