Experiments on lotteries for shrouded and bundled goods: Investigating the economics of fukubukuro

Chaikal Nuryakin, Alistair Munro

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Fukubukuro (or lucky bag) is a familiar institution in Japan and elsewhere in which the exact contents of a New Year sales item are hidden from the consumer before purchase. Motivated by the fukubukuro example and the lack of evidence on risk attitudes in lotteries involving goods, we conduct a laboratory experiment in which the outcomes are bundled or unbundled goods. The implied gains to a monopoly seller for marketing goods in lottery form rather than separately are only clearly positive for lotteries where there is a higher probability of obtaining the more highly valued good.

Original languageEnglish
JournalJapanese Economic Review
DOIs
Publication statusAccepted/In press - 1 Jan 2018

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