Lotteries are a form of gambling which involves drawing lots for a prize.
Lottery banned by some governments, while others confirmed so far organized a national or state lotteries. It is not uncommon to find some rules of the lottery by governments. In the early 20th century, most forms of gambling, including lotteries and sweepstakes, were illegal in many countries, including the United States and Europe. This remained until after World War II. In the 1960s, casinos and lotteries began to appear around the world as a way to raise revenue in addition to the tax.
National Lottery building located on Paseo de la Reforma Mexico City.
Lotteries come in various formats. For example, gifts can be the amount of cash or goods to remain. In this format there is a risk to the organizer if insufficient tickets sold. More common prize fund will be fixed percentage of receipts. This popular form of the series "50-50" in which the organizers promise that the prize will be 50% of the revenue. [Quotation needed] Many recent lotteries allow purchasers to select the number of lottery tickets, resulting in the possibility of multiple winners.
Purchase of lottery tickets cannot be taken into account by the model results based on maximizing expected value. The reason is that the lottery ticket that costs more than expected profit, so a value-maximizing is not expected to buy lottery tickets. However, the purchase of lottery tickets can be explained by the model results based on maximizing expected utility, as the curvature of utility functions that can be adjusted to capture the search for risk behavior. More general model based on utility functions defined on matters other than the lottery results can also consider to take a chance. In addition to lottery prizes, tickets may allow buyers to experience the fun and enjoy the fantasy get rich. If the entertainment value (or other non-monetary value) earned by playing high enough for certain individuals, the purchase of lottery tickets can represent gains in overall utility. In such cases, the dis utility of the financial losses can be outweighed by a combination of expected utility of profit and non-financial nature, thus making the purchase a rational decision for the individual. This is some defined lottery and the history
