Experiments on Lotteries for Shrouded and Bundled Goods: Investigating the Economics of Fukubukuro

21 Pages Posted: 11 May 2019

See all articles by Chaikal Nuryakin

Chaikal Nuryakin

University of Indonesia (UI)

Alistair Munro

National Graduate Institute for Policy Studies (GRIPS); University of London, Royal Holloway College - Department of Economics

Date Written: June 2019

Abstract

Fukubukuro (or lucky bag) is a familiar institution in Japan and elsewhere in which the exact contents of a New Year sales item are hidden from the consumer before purchase. Motivated by the fukubukuro example and the lack of evidence on risk attitudes in lotteries involving goods, we conduct a laboratory experiment in which the outcomes are bundled or unbundled goods. The implied gains to a monopoly seller for marketing goods in lottery form rather than separately are only clearly positive for lotteries where there is a higher probability of obtaining the more highly valued good.

Suggested Citation

Nuryakin, Chaikal and Munro, Alistair, Experiments on Lotteries for Shrouded and Bundled Goods: Investigating the Economics of Fukubukuro (June 2019). The Japanese Economic Review, Vol. 70, Issue 2, pp. 168-188, 2019, Available at SSRN: https://ssrn.com/abstract=3385674 or http://dx.doi.org/10.1111/jere.12194

Chaikal Nuryakin (Contact Author)

University of Indonesia (UI) ( email )

Jl. Prof. Sumitro Djojohadikusumo
Depok, DKI 16424
Indonesia

Alistair Munro

National Graduate Institute for Policy Studies (GRIPS) ( email )

Tokyo
Japan

HOME PAGE: http://www.grips.ac.jp/

University of London, Royal Holloway College - Department of Economics ( email )

Royal Holloway College
Egham
Surrey, Surrey TW20 0EX
United Kingdom

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