Empirical Economics

, Volume 42, Issue 3, pp 929–945 | Cite as

Network externalities in consumer spending on lottery games: evidence from Spain

  • Brad R. Humphreys
  • Levi Perez


We use data from two nationally representative Spanish surveys in 2005 and 2006 to investigate spending on lottery games. Estimates from Tobit and double hurdle models of participation in lottery markets and spending on lottery tickets find that frequent participation in one game is not associated with an increased or decreased probability of participating in other games, but is associated with increased spending on other games. Consumer spending on different lottery games exhibits inter-related consumption decisions. Also, the assumptions underlying the double hurdle model, but not the Tobit model, better describe consumer spending on lottery tickets in Spain.


Double hurdle model Gambling Lottery Network externalities Consumer spending 

Mathematics Subject Classification (2000)

D12 C21 D62 


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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of AlbertaEdmontonCanada
  2. 2.Departamento de EconomíaUniversidad de OviedoOviedoSpain

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