We use monthly data on gross expenditure on luck and skill games in Italy to investigate whether people react to recessions investing in activities based on fortune or ability. Luck game expenditure is volatile and positively correlated with unemployment in economic downturns. Naive consumers tend to consider luck games as a potential source of additional income during recessions. Skill game expenditure is persistent over time and uncorrelated with the unemployment rate, suggesting a more balanced attitude of skill consumers. This study provides evidence on the prevailing behavior and reaction of expert or naïve consumers when facing economic downturns.
Capacci, S., Randon, E., Scorcu, A.E. (2017). Are Consumers More Willing to Invest in Luck During Recessions?. ITALIAN ECONOMIC JOURNAL, 3(1), 25-38 [10.1007/s40797-016-0043-x].
Are Consumers More Willing to Invest in Luck During Recessions?
CAPACCI, SARA;RANDON, EMANUELA;SCORCU, ANTONELLO EUGENIO
2017
Abstract
We use monthly data on gross expenditure on luck and skill games in Italy to investigate whether people react to recessions investing in activities based on fortune or ability. Luck game expenditure is volatile and positively correlated with unemployment in economic downturns. Naive consumers tend to consider luck games as a potential source of additional income during recessions. Skill game expenditure is persistent over time and uncorrelated with the unemployment rate, suggesting a more balanced attitude of skill consumers. This study provides evidence on the prevailing behavior and reaction of expert or naïve consumers when facing economic downturns.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
