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Examining the Halo Effect in Lotto Games

Author

Listed:
  • Victor Matheson

    (Department of Economics, College of the Holy Cross)

  • Kent Grote

    (Department of Economics and Business, Lake Forest College)

Abstract

The "Halo Effect" occurs when lotto ticket sales are unexpectedly high following a large jackpot. An examination of the Powerball lottery finds evidence that the halo effect exists and that it is the result of bettors exchanging prize winnings for new tickets.

Suggested Citation

  • Victor Matheson & Kent Grote, 2005. "Examining the Halo Effect in Lotto Games," Working Papers 0513, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:0513
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    File URL: https://hcapps.holycross.edu/hcs/RePEc/hcx/HC0513-Matheson-Grote_HaloEffect.pdf
    File Function: Initial version, August 2005
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    References listed on IDEAS

    as
    1. Lisa Farrell & Edgar Morgenroth & Ian Walker, 1999. "A Time Series Analysis of U.K. Lottery Sales: Long and Short Run Price Elasticities," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 513-526, November.
    2. Scott, Frank A, Jr & Gulley, O David, 1995. "Testing for Efficiency in Lotto Markets," Economic Inquiry, Western Economic Association International, vol. 33(2), pages 175-188, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
    2. Humphreys, Brad & Perez, Levi, 2011. "Lottery Participants and Revenues: An International Survey of Economic Research on Lotteries," Working Papers 2011-17, University of Alberta, Department of Economics.
    3. De Paola, Maria & Scoppa, Vincenzo, 2014. "Media exposure and individual choices: Evidence from lottery players," Economic Modelling, Elsevier, vol. 38(C), pages 385-391.
    4. Kent R. Grote & Victor A. Matheson, 2014. "The Impact of State Lotteries and Casinos on State Bankruptcy Filings," Growth and Change, Wiley Blackwell, vol. 45(1), pages 121-135, March.
    5. Hellmanzik, Christiane, 2016. "Historic art exhibitions and modern - day auction results," Research in Economics, Elsevier, vol. 70(3), pages 421-430.
    6. Michael Coon & Gwyneth Whieldon, 2016. "Elasticity of Demand and Optimal Prize Distribution for Instant Lottery Games," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(4), pages 457-469, December.

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    More about this item

    Keywords

    lotto; lottery; public finance; gambling;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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