The Losers Distribution, with Applications to Financial Exclusion

32 Pages Posted: 12 Aug 2019 Last revised: 10 Apr 2020

Date Written: February 17, 2020


This paper develops the “Losers Distribution,” a new discrete probability distribution that describes the number of losers in a k-player game with n-fold identical trials. The problem of financial exclusion demonstrates one application. Luck is used to unleash, pool and circulate the financial resources of the poor in much the same way that interest rates pool and reallocate financial resources among the non-poor. I propose compensated, subsidized lotteries as a complement to microfinance for providing financing to the poor.

Keywords: Financial Exclusion, Inequality, Probability Distribution, Financial Market Failure, Income Distribution, Poverty, Lotteries

JEL Classification: O1, C1, G1, H4

Suggested Citation

Edwards, John H. Y., The Losers Distribution, with Applications to Financial Exclusion (February 17, 2020). Available at SSRN: or

John H. Y. Edwards (Contact Author)

Tulane University ( email )

6823 St Charles Ave
New Orleans, LA 70118
United States
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5048655869 (Fax)

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