nep-spo New Economics Papers
on Sports and Economics
Issue of 2006‒09‒23
two papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Gamblers’ Love for Variety and Substitution among Lotto Games By Victor Matheson; Kent Grote
  2. Star Wars: Exclusive Superstars and Collusive Outcomes By Selvaggi, Marianao; Vasconcelos, Luis

  1. By: Victor Matheson (Department of Economics, College of the Holy Cross); Kent Grote (Department of Economics and Business, Lake Forest College)
    Abstract: This paper considers the whether offering multiple lotto games within a state by joining a multi-state lottery increases total ticket sales compared to offering a single state game. The question is considered from two different perspectives, which both lead to the conclusion that states do tend to benefit from increased ticket sales overall by joining a multi-state lottery association. There is, however, a noted difference in the magnitude of that effect depending on the size of the average jackpots of the previously existing state games.
    Keywords: lotto, lottery, public finance, gambling
    JEL: D81 H71 L83
    Date: 2006–09
  2. By: Selvaggi, Marianao; Vasconcelos, Luis
    Abstract: We examine the impact of agreements that prohibit "superstars" from switching their services to rivals on firms' ability to collude. Exclusivity (or non-compete) clauses are not uncommon in the sports,entertainment and professional services industries, but courts often refrain from enforcing them owing to inequity and/or restraint of trade considerations. We argue this attitude may be misguided. While in the collusive path exclusion may be inconsequential because firms agree not to hire each other's star, its enforcement level aspects the severity of future punishments. For exclusive talent may not be poached by rivals. The ability to sustain tacit collusion may thus be impaired, which in plausible constellations leads to efficiency improvements and more equitable distribution of rents.
    Date: 2006

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