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http://hdl.handle.net/10419/46664
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| Title: | | The demand for unfair gambles: Why illegal lotteries persist  |
| Authors: | | Desierto, Desiree A. Nye, John V. C. Pamintuan, Jema M. |
| Issue Date: | | 2011 |
| Series/Report no.: | | Discussion paper // School of Economics, University of the Philippines 2011,03 |
| Abstract: | | We show how cheating in illegal gambling can be sustained in equilibrium, even when gamblers are aware of it. Not only is cheating profit-maximizing for operators, but it can also be utility-maximizing if it provides gamblers the opportunity to engage in other related activities that generate non-monetary rewards, such as practicing superstitions. This, in turn, suggests why legalizing gambling might not fully capture the gains from the illegal market - operators and gamblers both prefer cheating, but this would be harder to hide in a legalized environment. We illustrate the model, generate results, and verify them empirically, using the example of jueteng, an illegal numbers game in the Philippines. |
| Document Type: | | Working Paper |
| Appears in Collections: | | UPSE Discussion Papers, University of the Philippines
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