Effective price elasticity for the Taiwan Lotto

Abstract

Taiwan Lotto was inaugurated in January 2002, immediately becoming a popular activity in Taiwan. However, the growth of lotto sales as slowed following the subsidence of the big craze following its initial introduction. To maintain the momentum of lottery sales, operators have organized numerous change of Taiwan Lotto. This investigation evaluates not only the effective price elasticity in the Taiwan Lotto but also the impact of the new Big Lotto and the changes to the Lotto’s structure on Taiwan Lotto ticket sales. Empirical findings indicated that (1) the effective price elasticity of Lotto is –0.522 during the first 5 years. (2) The introduction of Big Lotto and structural changes to the Lotto have decreased tickets sales for the Taiwan Lotto.

Keywords:

• Effective price
• Lotto
• price elasticity