Date

4-2009

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Amelia L. Bello

Abstract

The study conducted a comparative analysis on the level of addiction of bingo players with other addicting commodities such as lotto, liquors and cigarettes. The Becker- Murphy utility model was used in the study to test the level of addiction. The objective of the study is to characterize bingo players if they possessed myopic or rational addiction, what are the factors affecting their utility and to derive the short-run income elasticity. A primary survey was conducted in two bingo outlets in Bulacan. Analysis of the survey showed that bingo is being played mostly by female and mostly of Roman Catholic affiliation. Majority of the respondents belong to low income groups and that is their reason why they are engaged in gambling. The comparative analysis between bingo and lotto showed that bingo has a lower coefficient than the coefficients of lotto, cigarettes and liquors. A linear regression analysis was used to determine the factors that affect utility. Among the explanatory variables, past consumption, future consumption, income, and winning experience of friends were found to be statistically significant. Short run income elasticity was also derived in the study. The positive sign implies that the income increases, consumption also increases, hence bingo is a normal good. On the other hand, the short run price elasticity has a coefficient of 0.05 which implies bingo has a demand that is price inelastic.

Language

English

Document Type

Thesis

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