Session Title

Session 2-3-D: Gambling Behavior

Presentation Type

Event

Location

Caesars Palace, Las Vegas, Nevada

Start Date

29-5-2019 1:45 PM

End Date

29-5-2019 3:10 PM

Disciplines

Behavioral Economics

Abstract

Near win is a special kind of failure that comes closely to actual success. It shows up frequently in people’s investment behavior. Only a few studies have researched on the relation between near win and its impact on the future investment. And in the literature, there are conflicting results on this issue. In this paper, we examine the effect of near win on people’s investment amount by exploiting a unique panel individual level lottery purchase data with over 100,000 players which trace each of their purchases for several months. We find that people who have experienced a near win would invest more money in buying FC3D lottery. It suggest that near win would motivate people to increase their investment amount.

Author Bios

Prof Yuan Jia is currently an Associate Professor at the Faculty of Business Administration at the University of Macau.

His research interests include empirical industrial organization and behavioral economics. His articles are published at the Journal of Comparative Economics, Journal of Economic Behavior and Organization, Economic Inquiry, Review of Industrial Organization, and more.

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May 29th, 1:45 PM May 29th, 3:10 PM

Does Near Win Affect People's Investment Behavior?

Caesars Palace, Las Vegas, Nevada

Near win is a special kind of failure that comes closely to actual success. It shows up frequently in people’s investment behavior. Only a few studies have researched on the relation between near win and its impact on the future investment. And in the literature, there are conflicting results on this issue. In this paper, we examine the effect of near win on people’s investment amount by exploiting a unique panel individual level lottery purchase data with over 100,000 players which trace each of their purchases for several months. We find that people who have experienced a near win would invest more money in buying FC3D lottery. It suggest that near win would motivate people to increase their investment amount.