Title
UNDERPRICING IN PUBLIC LOTTERIES: A CRITIQUE OF USER-PAY AND ALL-PAY TARIFFS
Abbreviated Journal Title
Econ. Inq.
Keywords
GOODS; Economics
Abstract
A body of literature spanning from medical ethics to public economics has amassed regarding the rationing of underpriced public resources. This study investigates the effects of price on entry, individual and aggregate expected consumer surplus, and tax revenues in user-pay and all-pay (AP) lotteries. Comparative statics indicate that expected surplus may increase (decrease) as price increases (decreases) if entry is sufficiently responsive though entry in AP lotteries is inelastic at all prices. Further, the lotteries are shown to be outcome equivalent under revenue equivalency. Selected results are evaluated numerically with simulations performed across a broad class of distributions describing individual private values. (JEL D45, D61, H42).
Journal Title
Economic Inquiry
Volume
47
Issue/Number
3
Publication Date
1-1-2009
Document Type
Article
Language
English
First Page
500
Last Page
511
WOS Identifier
ISSN
0095-2583
Recommended Citation
"UNDERPRICING IN PUBLIC LOTTERIES: A CRITIQUE OF USER-PAY AND ALL-PAY TARIFFS" (2009). Faculty Bibliography 2000s. 2109.
https://stars.library.ucf.edu/facultybib2000/2109
Comments
Authors: contact us about adding a copy of your work at STARS@ucf.edu