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Subjective relative income and lottery ticket purchases
Authors:Emily Haisley  Romel Mostafa  George Loewenstein
Affiliation:1. Department of Organizational Behavior and Theory, Carnegie Mellon University, Pittsburgh, Pennsylvania, USA;2. Department of Social and Decision Sciences, Carnegie Mellon University, Pittsburgh, Pennsylvania, USA
Abstract:Despite a return of only $.53 on the dollar, state lotteries are extremely popular, especially among the poor, who play the most but can least afford to play. In two experiments conducted with low‐income participants, we examine how implicit comparisons with other income classes increase low‐income individuals' desire to play the lottery. In Experiment 1, participants were more likely to purchase lottery tickets when they were primed to perceive that their own income was low relative to an implicit standard. In Experiment 2, participants purchased more tickets when they considered situations in which rich people or poor people receive advantages, implicitly highlighting the fact that everyone has an equal chance of winning the lottery. Copyright © 2007 John Wiley & Sons, Ltd.
Keywords:decision making  poverty  lotteries  social comparison  risk taking  gambling
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