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Please use this identifier to cite or link to this item: http://hdl.handle.net/11299/55890

Title: A Theory of Demand for Gambles
Authors: Nyman, John A.
Keywords: D81
D11
Issue Date: Sep-2004
Publisher: Center for Economic Research, Department of Economics, University of Minnesota
Citation: Nyman, J.A., (2004), "A Theory of Demand for Gambles", Discussion Paper No. 322, Center for Economic Research, Department of Economics, University of Minnesota.
Series/Report no.: Discussion Paper
322
Abstract: Although gambling is primarily an economic activity, no single theory of the demand for gambles has gained wide-spread acceptance among economists. This paper proposes a simple model of the demand for gambling that is based on the standard economic assumptions that (1) resources are scarce and (2) consumer's utility increases with income at a decreasing rate. This model has the advantages that (1) it is based solely on changes in income, (2) is potentially applicable to most consumers, (3) preserves the assumption of diminishing marginal utility of income, (4) is consistent with the insurance-buying gambler, and (5) has intuitive appeal.
URI: http://purl.umn.edu/55890
Appears in Collections:Discussion Papers

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