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Happy-go-lucky. Positive emotions boost demand for lotto

Author

Listed:
  • Zuzanna Halicka

    (University of Warsaw)

  • Michał Krawczyk

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

The objective of this work was to investigate whether situational emotions can influence consumers’ decision to purchase lottery tickets. We conducted a field experiment in which positive or negative emotions were induced immediately prior to such a decision in 685 subjects unaware of their participation in a study. Two methods of induction—gambling related and gambling unrelated—were used to verify the robustness of the results. We found that subjects in whom positive emotions were induced, in both gambling and non-gambling contexts, bought lottery tickets significantly more often than subjects with negative emotions or those in the control group.

Suggested Citation

  • Zuzanna Halicka & Michał Krawczyk, 2014. "Happy-go-lucky. Positive emotions boost demand for lotto," Working Papers 2014-09, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2014-09
    as

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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP126.pdf
    File Function: First version, 2014
    Download Restriction: no
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    References listed on IDEAS

    as
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    2. repec:feb:framed:0074 is not listed on IDEAS
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    6. John E. Grable & Michael J. Roszkowski, 2008. "The influence of mood on the willingness to take financial risks," Journal of Risk Research, Taylor & Francis Journals, vol. 11(7), pages 905-923, October.
    7. Enrico Diecidue & Ulrich Schmidt & Peter P. Wakker, 2004. "The Utility of Gambling Reconsidered," Journal of Risk and Uncertainty, Springer, vol. 29(3), pages 241-259, December.
    8. Au, Kevin & Chan, Forrest & Wang, Denis & Vertinsky, Ilan, 2003. "Mood in foreign exchange trading: Cognitive processes and performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 91(2), pages 322-338, July.
    9. Kliger, Doron & Levy, Ori, 2003. "Mood-induced variation in risk preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 573-584, December.
    10. Olney, Thomas J & Holbrook, Morris B & Batra, Rajeev, 1991. "Consumer Responses to Advertising: The Effects of Ad Content, Emotions, and Attitude toward the Ad on Viewing Time," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 440-453, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Dijk, Oege, 2017. "Bank run psychology," Journal of Economic Behavior & Organization, Elsevier, vol. 144(C), pages 87-96.
    2. Krawczyk, Michał Wiktor, 2015. "Probability weighting in different domains: The role of affect, fungibility, and stakes," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 1-15.

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    More about this item

    Keywords

    decision making; lotteries; induced emotions; gambling-related cues; field experiment;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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