On the design of lottery games
2003 (English)In: Journal of the Operational Research Society, ISSN 0160-5682, E-ISSN 1476-9360, Vol. 54, no 1, 89-100 p.Article in journal (Refereed) Published
We describe a model of participation in lottery games designed to address the optimisation of tax revenue in state-sponsored lotteries. The model treats participants dynamically and examines a long-run equilibrium. A novel high frequency approximation is used to turn the problem into a static, state-contingent deterministic programming problem. We demonstrate that the solution of this problem has qualitatively plausible properties and then calibrate the model against the United Kingdom National Lottery (UKNL). The results suggest that the current design of the UKNL may not be maximising tax revenue.
Place, publisher, year, edition, pages
Palgrave Macmillan, 2003. Vol. 54, no 1, 89-100 p.
lottery, dynamic optimisation, simulations
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-83516DOI: 10.1057/palgrave.jors.2601484ISI: 000181150000011OAI: oai:DiVA.org:umu-83516DiVA: diva2:668449