When and Why People Prefer Markets Versus Lotteries

When do people prefer to use markets versus lotteries to allocate scarce goods and services? We suggest people endorse markets when preferences vary (preferring lotteries otherwise). This is because people want markets to sort people based on their preferences; when everyone has similar preferences, there is less “signal” to detect.


Franklin Shaddy and Anuj K. Shah (2019) ,"When and Why People Prefer Markets Versus Lotteries", in NA - Advances in Consumer Research Volume 47, eds. Rajesh Bagchi, Lauren Block, and Leonard Lee, Duluth, MN : Association for Consumer Research, Pages: 842-843.


Franklin Shaddy, University of California Los Angeles, USA
Anuj K. Shah, University of Chicago, USA


NA - Advances in Consumer Research Volume 47 | 2019

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