Luck vs Skill in Gambling Over the Recession. Evidence from Italy

Quaderni - Working Paper DSE N° 918

17 Pages Posted: 15 Jan 2014

See all articles by Sara Capacci

Sara Capacci

University of Bologna - Department of Economics

Emanuela Randon

University of Bologna

Antonello E. Scorcu

University of Bologna - Department of Economics

Date Written: January 13, 2014

Abstract

We perform an econometric analysis of the gambling market in Italy over the recession (2009-2012), observing the consumption patterns in "luck" and "skill" games. We find a different effect between the early and late period of the crisis. Whereas gambling initially behaves as normal good, in the long run luck games increase with the worsening of economic conditions. Moreover, skill games are more persistent and influence luck games, but not the opposite. Skill players choose simple lottery games, but luck players cannot handle complex games. Our results provide insights on investment choices in financial markets among expert and naïve buyers.

Keywords: Gambling, Economic Crises, Financial Investment

JEL Classification: D12, L83, G01

Suggested Citation

Capacci, Sara and Randon, Emanuela and Scorcu, Antonello, Luck vs Skill in Gambling Over the Recession. Evidence from Italy (January 13, 2014). Quaderni - Working Paper DSE N° 918, Available at SSRN: https://ssrn.com/abstract=2378335 or http://dx.doi.org/10.2139/ssrn.2378335

Sara Capacci (Contact Author)

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

HOME PAGE: http://www.unibo.it/faculty/sara.capacci

Emanuela Randon

University of Bologna ( email )

Piazza Scaravilli 2
Bologna, 40100
Italy

Antonello Scorcu

University of Bologna - Department of Economics ( email )

I-40126 Bologna
Italy

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