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来源类型Working Paper
规范类型报告
DOI10.3386/w15713
来源IDWorking Paper 15713
Spatial Competition and Cross-border Shopping: Evidence from State Lotteries
Brian G. Knight; Nathan Schiff
发表日期2010-01-28
出版年2010
语种英语
摘要This paper investigates competition between jurisdictions in the context of cross-border shopping for state lottery tickets. We first develop a simple theoretical model in which consumers choose between state lotteries and face a trade-off between travel costs and the price of a fair gamble, which is declining in the size of the jackpot and the odds of winning. Given this trade-off, the model predicts that per-resident sales should be more responsive to prices in small states with densely populated borders, relative to large states with sparsely populated borders. Our empirical analysis focuses on the multi-state games of Powerball and Mega Millions, and the identification strategy is based upon high-frequency variation in prices due to the rollover feature of lottery jackpots. The empirical results support the predictions of the model. The magnitude of these effects is large, suggesting that states do face competitive pressures from neighboring lotteries, but the effects vary significantly across states.
主题Public Economics ; Taxation ; Subnational Fiscal Issues
URLhttps://www.nber.org/papers/w15713
来源智库National Bureau of Economic Research (United States)
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资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/573386
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Brian G. Knight,Nathan Schiff. Spatial Competition and Cross-border Shopping: Evidence from State Lotteries. 2010.
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