By Matti Viren (eds.)
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Extra resources for Gaming in the New Market Environment
We have wanted to concentrate on a broad economic perspective avoiding, at the same time, the highly controversial legal and political questions, which will require different sort of legal and political expertise. Whilst dealing with the recent advances of research, this book also covers certain deﬁciencies in the analysis and data. We have had par- Introduction 21 ticular problems with data. For the demand analysis, there are relatively few data sets, especially outside the UK and the US. There is little information usable for public policy type analyses, such as the ﬁscal issues and cost conditions.
We will critically appraise different measures of welfare and existing studies that attempt to measure welfare effects. We will consider the consequences/impacts of the expanding gaming market on individual and social welfare. It is not however, our intention to provide a full appraisal of the beneﬁts and costs of the betting and gaming sector, the focus here is to provide a better understanding of the methodologies that practitioners use to address welfare issues, so that we can more clearly evaluate the results of such studies in order to make sensible, evidence-based, policy decisions.
Basic economic principals tell us that addictive goods have higher price elasticities and in the context of the betting and gaming industry, this suggests that addicted consumers will be less sensitive to price changes than non-addicted consumers; implying that there is potentially more than one demand curve for each gambling product. For recreational gamblers there is a whole market of leisure activities they can engage in and so they are sensitive to price changes (resulting in a less steep demand curve relative to pathological gamblers), problem gamblers, on the other hand, face a smaller market to satisfy their demand for gambles and therefore are less price sensitive (resulting in a steeper demand curve).
Gaming in the New Market Environment by Matti Viren (eds.)