Banking on Gambling: Banks and Lottery-Linked Deposit Accounts

Posted: 8 Mar 2003

See all articles by Mauro F. Guillen

Mauro F. Guillen

University of Pennsylvania - Management Department

Adrian E. Tschoegl

University of Pennsylvania - Management Department

Abstract

Deposit accounts that provide an interest return determined by a lottery have proved to be popular around the world. From the point of view of a bank, these products are especially successful among relatively low-income customers, or in markets in which many people are outside the banking system. Below, we describe numerous examples of such accounts, and analyze their economics.

Keywords: Randomized return, lottery, behavioral finance

Suggested Citation

Guillen, Mauro Federico and Tschoegl, Adrian E., Banking on Gambling: Banks and Lottery-Linked Deposit Accounts. Available at SSRN: https://ssrn.com/abstract=382866

Mauro Federico Guillen (Contact Author)

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-573-6267 (Phone)
215-326-3205 (Fax)

Adrian E. Tschoegl

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

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