@techreport{e259ce7eaae740cb82350fd3e4eea808,
title = "Reference Dependence and Lottery Participation",
abstract = "We assume that lottery participants are poor relative to their target income. Reference dependence with loss aversion can render the marginal utility of income non-monotonic in line with the Friedman-Savage hypothesis. As a result, lottery participation can be rational without probability weighting. Our theoretical predictions are consistent with the latest empirical evidence on lottery spending.",
author = "Robertas Zubrickas",
year = "2025",
language = "English",
series = "BATH ECONOMICS RESEARCH PAPERS",
publisher = "University of Bath",
number = "111/25",
address = "UK United Kingdom",
type = "WorkingPaper",
institution = "University of Bath",
}