GAMBLING DEMAND: A META-ANALYSIS OF THE PRICE ELASTICITY

Article Sidebar

Requires Subscription or Fee PDF (GBP 25)
Published: May 29, 2015
DOI: https://doi.org/10.5750/jgbe.v9i1.882
Keywords:
Demand for gambling Price elasticity Meta-analysis

Main Article Content

Craig Arthur Gallet
California State University, Sacramento

Abstract

Many studies have examined the demand for gambling, providing roughly 200 estimates of the price elasticity associated with horse racing, casino gaming, and the lottery.  Treating these price elasticities as observations of the dependent variable in a meta-regression model, several features of the literature are found to influence the price responsiveness of gambling.  For instance, the price elasticity of casino gambling is lowest in absolute value, while the price elasticities of horse racing and the lottery are of similar value.  Also, not only are there regional differences in the price elasticity of gambling, but other model features, such as the functional form of gambling demand, are found to influence the price elasticities. 

Article Details

Issue
Vol. 9 No. 1 (2015)
Section
Articles
Author Biography

Craig Arthur Gallet, California State University, Sacramento

Professor of Economics

References

Ariyabuddhiphongs, V. (2011). Lottery gambling: A review. Journal of Gambling Studies, 27(1), 15-33.

Barten, A. P. (1993). Consumer allocation models: Choice of functional form. Empirical Economics, 18(1), 129-158.

Brons, M., Pels, E., Nijkamp, P., & Rietveld, P. (2002). Price elasticities of demand for passenger air travel: A meta-analysis. Journal of Air Transport Management, 8(3), 165-175.

Clotfelter, C. T., & Cook, P. J. (1990). On the economics of state lotteries. Journal of Economic Perspectives, 4(4), 105-119.

Crouch, G.I. (1992). Effect of income and price on international tourism. Annals of Tourism Research, 19(4), 643-664.

Dalhuisen, J. M., Florax, R. J. G. M., de Groot, H. L. F., & Nijkamp, P. (2003). Price and income elasticities of residential water demand: A meta-analysis. Land Economics, 79(2), 292-308.

Dowling, N., Smith, D., & Thomas, T. (2005). Electronic gaming machines: Are they the “crack-cocaine” of gambling? Addiction, 100(1), 33-45.

Espey, M. (1998). Gasoline demand revisited: An international meta-analysis of elasticities. Energy Economics, 20(3), 273-295.

Espey, J. A., & Espey, M. (2004). Turning on the lights: A meta-analysis of residential electricity demand elasticities. Journal of Agricultural and Applied Economics, 36(1), 65-82.

Farrell, L., & Walker, I. (1999). The welfare effects of lotto: Evidence from the UK. Journal of PublicEconomics, 72(1), 99-120.

Fogarty, J. (2010). The demand for beer, wine and spirits: A survey of the literature. Journal of Economic Surveys, 24(3), 428-478.

Gallet, C. A. (2007). The demand for alcohol: A meta-analysis of elasticities. Australian Journal of Agricultural and Resource Economics, 51(2), 121-135.

Gallet, C. A. (2014). Can price get the monkey off our back? A meta-analysis of illicit drug demand. Health Economics, 23(1), 55-68.

Gallet, C. A., & List, J. A. (2003). Cigarette demand: A meta-analysis of elasticities. Health Economics, 12(10), 821-835.

García, J., & Rodríguez, P. (2007). The demand for football pools in Spain: The role of price, prices, and the composition of the coupon. Journal of Sports Economics, 8(4), 335-354.

Grote, K. R., & Matheson, V. A. (2011). The economics of lotteries: A survey of the literature. Working Paper.

Mason, P. M., Steagall, J. W., & Fabritius, M. M. (1997). The elasticity of demand for Lotto tickets and the corresponding welfare effects. Public Finance Review, 25(5), 474-490.

Mobilia, P. (1993). Gambling as a rational addiction. Journal of Gambling Studies, 9(2), 121-151.

Paton, D., Siegel, D. S., Williams, & L. V. (2004). Taxation and the demand for gambling: New evidence from the United Kingdom. National Tax Journal, 57(4), 847-861.

Perez, L. (2009). The state of empirical research on the demand for lottery. Working Paper.

Perez, L., & Forrest, D. (2011). Own- and cross-price elasticities for games within a state lottery portfolio. Contemporary Economic Policy, 29(4), 536-549.

Perez, L., & Humphreys, B. (2013). The “who and why” of lottery: Empirical highlights from the seminal economic literature. Journal of Economic Surveys, 27(5), 915-940.

Perloff, J. (2011). Microeconomics. New York: Pearson.

Scott, L., & Mitias, P. (1996). Trends in rankings of economics departments in the U.S.: An update. Economic Inquiry, 34(2), 378-400.

Stanley, T.D., & Doucouliagos, H. (2012). Meta-regression analysis in economics and business. Oxford: Routledge.

Suits, D. B. (1979). The elasticity of demand for gambling. Quarterly Journal of Economics, 93(1), 155-162.