Skip to content
The Insightful Leader Live: What Hostage Negotiators Can Teach Us About Everyday Negotiations | Register
A magazine of research and ideas from the
faculty of the Kellogg School of Management
Video: How to Play the Lottery Without Losing
Finance Mar 17, 2016

Video: How to Play the Lottery Without Losing

Can we fight the poverty trap with new savings accounts that offer raffle tickets instead of interest?

Based on the research of

Shawn Cole

Benjamin Iverson

Peter Tufano

Can the lure of a lottery jackpot spur people to save more money in the bank?

That is the question Benjamin Iverson wondered when he started researching prize-linked savings (PLS) accounts. The accounts, which are popular overseas, accrue little to no interest. Instead, PLS account holders get entered into jackpot drawings, earning more chances to win as they invest more in the account.

Iverson, an assistant professor of finance at the Kellogg School, and his coauthors used PLS account data from one of South Africa’s largest banks. He was particularly interested in how opening a PLS account impacts the total savings of people who are financially at-risk because they have little other savings and high amounts of debt.

Watch our video above to learn more about prize-linked savings accounts and the results of Iverson’s study.

Featured Faculty
Benjamin Iverson

Member of the Department of Finance faculty until 2017

LinkedIn Logo Share Chain Link Link Mail Email Printer Print Announce Republish
Most Popular This Week
  1. Is This a Job for a Human or AI?
    Five questions to ask before delegating an office project to your new computer coworker.
  2. Tiger Team, Assemble!
    These nimble groups of specialists can be transformative for your organization—and give rising stars a chance to shine.
  3. 5 Telltale Signs That a Photo Is AI-generated
    For one, scour for details that defy the laws of physics.
  4. Why Is the U.S. Stock Market Outpacing Europe’s?
    A $3 trillion gap in 2008 grew to a $34 trillion gap in 2023. Economists found a secret ingredient.
  5. Sitting Near a High-Performer Can Make You Better at Your Job
    “Spillover” from certain coworkers can boost our productivity—or jeopardize our employment.
  6. Executive Presence Isn’t One-Size-Fits-All. Here’s How to Develop Yours.
    A professor and executive coach unpacks this seemingly elusive trait.
  7. When the Leader Becomes the Brand
    Research explores how some entrepreneurs and inventors—like Thomas Edison and Arianna Huffington—become “person brands,” shaping entire industries.
  8. What AI “Synth Personas” Can and Can’t Reveal About Real Customers
    AI-generated composites are useful tools for marketers, but the nuances of actual humans are difficult to replicate.
More in Finance
Day Trading, Meet All-Night Trading
About Us Faculty & Research Research Hub
2211 Campus Drive, Evanston, IL 60208
insight@kellogg.northwestern.edu
LinkedIn LinkedIn Substack Substack Substack RSS
© Kellogg School of Management, Northwestern
University. All Rights Reserved. Privacy Policy.