Modern Economy

Volume 9, Issue 12 (December 2018)

ISSN Print: 2152-7245   ISSN Online: 2152-7261

Google-based Impact Factor: 0.74  Citations  h5-index & Ranking

A Dynamic Model of Gambling Addiction with Social Costs: Theory and Policy Solutions

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DOI: 10.4236/me.2018.912127    1,211 Downloads   2,653 Views  Citations

ABSTRACT

We investigate the effects of gambling addiction in a dynamic model in which wellbeing crucially depends on the accumulation of relational goods which is weakened by the consumption of gambling. We outline conditions under which gambling may become addictive leading to a suboptimal equilibrium from a social point of view. We examine the relative effectiveness of different policy solutions (tax on gambling, gambling restrictions) in bridging the distance between the equilibrium without intervention and social optimum.

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Solferino, N. , Becchetti, L. and Tessitore, M. (2018) A Dynamic Model of Gambling Addiction with Social Costs: Theory and Policy Solutions. Modern Economy, 9, 2039-2051. doi: 10.4236/me.2018.912127.

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