Risk, price and pay-off: A study explaining wagering and gambling behaviour using prevalent lottery models with an application of two stage least square regression

• Main Authors: Cheng, Kimbearly R., Litao, Roxanne N., Maluya, Christopher G., Mosende, Michael Brian C.
• Format: text
• Language: English
• Published: Animo Repository 2003
• Subjects: Gambling; Lotteries; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14109
• Institution: De La Salle University

The study explains behavior in an uncertainty environment. As gambling is perceived by many to be an act violating the basic principles of individual rationality, the determining factors that contribute to a gambler's decision to wager a bet, and at the same time the reasons for such, contribute to the interest in the said field of study. The study adopts the most popular lottery model--the Effective Price Model, as well a proposed alternative to such--the Jackpot Prize Model, applied in the United Kingdom as its working model. The integrities and applicability of the said models are tested in the Philippine setting in the duration of this study. Furthermore, this study applies a two-stage regression process using lotto 6/45 data taken from the Philippine Charity Sweepstakes Office (PCSO) to run the two models."