Speaker
Dr
Mattea Stein
(University of Naples Federico II and CSEF)
Description
As sports betting is surging worldwide, so are concerns about excessive gambling. To explore the drivers of this phenomenon, we conduct an experiment investigating how regular sports bettors in urban Tanzania value sports bets and form expectations about winning probabilities. We find that subjects assign higher certainty equivalents and winning probabilities to sports bets than to urn-and-balls lotteries with identical odds, even though, in fact, they are not more likely to win. We complement the experimental evidence with original survey data on sports betting frequency and motives. Overall, our results suggest that systematic misperceptions of the risks and returns associated with sports betting may contribute to its booming popularity.
| Keyword | Poverty and Inequality |
|---|
Authors
Dr
Lorenzo Pandolfi
(University of Naples Federico II and CSEF)
Dr
Marco Nieddu
(University of Cagliari)
Dr
Martin Chegere
(University of Dar es Salaam)
Dr
Mattea Stein
(University of Naples Federico II and CSEF)
Dr
Paolo Falco
(University of Copenhagen)
