Elasticity of demand for UK National Lottery tickets

Authors
Forrest, D Gulley, OD Simmons, R
Citation
D. Forrest et al., Elasticity of demand for UK National Lottery tickets, NAT TAX J, 53(4), 2000, pp. 853-863
Citations number
19
Categorie Soggetti
Economics
Journal title
NATIONAL TAX JOURNAL
ISSN journal
00280283 → ACNP
Volume
53
Issue
4
Year of publication
2000
Part
1
Pages
853 - 863
Database
ISI
SICI code
0028-0283(200012)53:4<853:EODFUN>2.0.ZU;2-6
Abstract
This paper examines sales patterns in the first three years of the UK Natio nal Lottery in order to estimate price elasticity of demand. Our long-run e stimate is very close to the value of minus one required for revenue maximi zation. We find that the UK Government has succeeded in setting a framework for the National Lottery that maximizes turnover and therefore the amount of money available for both Exchequer revenue and "Good Causes.".