Date of This Version
lotto, lottery, public finance, gambling
The "Halo Effect" occurs when lotto ticket sales are unexpectedly high following a large jackpot. An examination of the Powerball lottery finds evidence that the halo effect exists and that it is the result of bettors exchanging prize winnings for new tickets.
Working Paper Number
Matheson, Victor and Grote, Kent, "Examining the Halo Effect in Lotto Games" (2005). Economics Department Working Papers. Paper 80.