Date of this Version
Journal of Financial Services Research
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.
randomized return, lottery, behavioral finance
Guillén, M. F., & Tschoegl, A. E. (2002). Banking on Gambling: Banks and Lottery-Linked Deposit Accounts. Journal of Financial Services Research, 21 (3), 219-231. http://dx.doi.org/10.1023/A:1015081427038
Date Posted: 27 November 2017
This document has been peer reviewed.