Evaluate the claim behind the ad campaign

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Reference no: EM131190651

The commonwealth of Massachusetts recently ran an advertising campaign for the lottery which claimed "Even when you lose, you win." The gist of the advertisement was that lottery revenue was used for particularly good ends, such as education.

Suppose that lottery revenues are indeed earmarked for education. How would traditional economic theory evaluate the claim behind the ad campaign? How would an economist who believed in the flypaper effect evaluate it?

Reference no: EM131190651

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