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Research

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Publication details for Dr Damian Damianov

Damianov, D. S. (2015). Should lotteries offer discounts on multiple tickets? Economics Letters 126: 84-86.

Author(s) from Durham

Abstract

In a complete information setting we show that the standard lottery–in which each lottery ticket is offered for the same price–is an optimal fundraising mechanism in the presence of strong asymmetries in the way bettors value the prize and the public good provided with the lottery proceeds. When participants are more homogeneous, it is optimal to offer discounts for the purchase of multiple tickets.