Consumer demand for Prize-Linked Savings: a preliminary analysis

Tufano, Peter, Maynard, Nick and De Neve, Jan-Emmanuel (2008) Consumer demand for Prize-Linked Savings: a preliminary analysis. Harvard Business School Working Paper, No. 08-061.

Abstract

This paper reports on a small-scale survey of the potential American demand for prize-linked savings accounts, an account that awards prizes as part of the saving product's return. In October 2006, Centra Credit Union launched a prize-linked savings pilot. As part of that initiative, we conducted a mall intercept survey of over 500 people in Clarksville, Indiana, the community where the program was launched. This preliminary data suggests that low-to-moderate income Americans may have substantial demand for prize-linked savings, with a majority of survey participants expressing an interest in opening a prize-linked savings account. As predicted by theory and international experience, interest in prize-linked savings is greatest among people who do not have regular saving habits, who have little actual savings, who play lotteries extensively, and who are optimistic about their futures.

Item Type: Other Working Paper
Keywords: PLS products; savings
Date Deposited: 25 Oct 2011 15:01
Last Modified: 15 Oct 2015 02:18
URI: http://eureka.sbs.ox.ac.uk/id/eprint/936

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