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Or state lottery tickets. We rst develop a simple theoretical model in which consumers choose between state lotteries and face a trade-o between travel costs and the price of a fair gamble, which is declining in the size of the jackpot and the odds of winning. Given this trade-o , the model predicts that per-resident sales should be more responsive to prices in small states with densely populated borders, relative to large states with sparsely populated borders. Our empirical analysis focuses on.
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