Publication details for Dr Damian DamianovDamianov, D.S. (2015). Should Lotteries Offer Discounts on Multiple Tickets? Economics Letters 126: 84-86.
- Publication type: Journal Article
- ISSN/ISBN: 0165-1765
- DOI: 10.1016/j.econlet.2014.11.002
- Keywords: Fundraising mechanisms, Complete information, Asymmetries, Lottery ticket discounts.
- Further publication details on publisher web site
- Durham Research Online (DRO) - may include full text
Author(s) from Durham
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.