Careless Money and Lottery*
Zhengbing Wang **
1. Careless Money Theory
1.1 Connotation of Careless Money
People tend to bargain while shopping. The part, which both parties bargain, is the amount that buyer want to cut and sellers want to keep, and is meaningful in a transaction. We named it cared money or cared value, which has relation with the volume of a transaction. Another part,which can be neglected by both parties in a transaction is careless money. For example, Seller and buyer usually bargain for minimum unit of hundred Yuan if the value of the goods is over on
Besides shopping, we can easily find the effect of careless money in charitable donation, entertainment as well as profit distribution. People merely spare their careless money for charity, otherwise they will inevitably regret if some of their cared interests were undermined. It is true as entertaining friends. Faced with many alternatives, the final decision for a rational host directly coincides with his careless money. In China, people, when allocating the profits, tend to neglect the odd value since it is the careless money.
1.2 How to Decide the Proportion of Careless Money?
Careless money is a feeling of human being’s inner unconsciousness, but we wonder if there is any rule to decide on the proportion of careless money? The answer is yes. According to our observations, the amount of careless money has quantitative relation with the volume of a transaction as well as personal assets. Specifically speaking:
In shopping, the proportion of careless money varies from on
In donating, the proportion of careless money relates to personal assets. Commonly, on
When distributing profits, the proportion of careless money related to the amount which on
It is obvious that the millesimal law is the basic criterion in deciding the amount of careless money.
1.3 Explanations on the Careless Money
It is sure that there are some exceptions to the careless money. Firstly, we regard that the criteria in deciding the amount of careless money is suit for ordinary person. For example, in generous opinions, it might be well over on
2. Theoretical Basis of Lottery
Lottery industry has a long history for hundreds of years. It is experiencing a rapid developing stage, especially in developing countries. The reasons why the public accepts it are mainly based on the following statements:
2.1 Theoretical Basis I: The Nature of Gambling
Gambling is human being’s nature and instinct. The temptation of lottery is that people are in hope of making fortune in risk of little money though the chances are slim. Except for this, other reasons should also be considered: (1) Though there are many ways to make fortune, it is no doubt that gambling is the quickest way to realize the dream; (2) It is easy to learn for gambling; (3) The regulations of gambling is fair for everyone.
Currently, Chinese government, taking good use of human being’s nature of gambling, is issuing welfare lottery and sports lottery to raise necessary money for economic development. Undoubtedly, the funds that can be raised will be much less if people are pure motivation of investing on sports or welfare lotteries, and they are out of charity. Lottery game is firmly rooted in human being’s nature of gambling. Though lottery has elements of gambling, it has many differences with gambling: Firstly, the amount of stake and the ratio of return is different. For gambling, the amount of stake has direct proportion with the output of the game, while in lottery game the amount per stake is fixed. Let’s take Chinese welfare lottery game as an example, the face value per share is on
2.2 Theoretical Basis II: Careless Money Theory
Owing to the slim probability of bearing the prize, especially the great on
3. Enlightenment on Lottery Industry
Careless money theory is meaningful to the economic activities. On
3.1 Prediction of the Rational Aggregate Funds before Issuing the Lottery
On
If the amount of lottery issued is less than the rational amount, it shows the potential; Vice versa, the bubbles in the lottery market are appearing and corresponding measures that need to take.
3.2 Decision-making on the Aggregation of On
Above analysis has shown that the amount of people investing in lottery is strictly abided by the millesimal law. This will facilitate individual’s decision-making on how much money which should invest on the lottery. According to our six-month investigation on 100 luck tries, the amount of their careless money betting on lottery is about on
After individual’s rational amount invested on a specific lottery is ascertained, another question is coming up. How many times for an individual should be on the lottery? It seems it is early to have a definite answer now. As for our research on careless money in China, three times are appropriate for the charitable donation annually. Maybe it can be a reference for the investment on the lottery.
References:
1. G. Hofstede. Organizational Dynamics, Cambridge University Press, 1980
2. Richardsteers, Lyman W. Porber. Motivation and Beha
3. Zhengbing Wang. Discussion on the Careless Money, Economist, 2001(1): 121-122
(Edited by Bingsong Wu, Zhenfeng Zhang and Susan)
* The author acknowledges the support of National Natural Science Foundation of China (grants: 70273035).
** Zhengbing Wang, professor and Ph. D. supervisor of the College of Economics and Management, Northwest Sic-Tech University of Agriculture and Forestry (NWSUAF); The author’s research fields are operation patterns and agriculture economics and has put forward economic theories of “absolute input theory ”, ”costless labor theory”, “intensive agriculture” and “careless money theory”; Tel: 029-87081140, 87092167, 13319257553; E-mail: wzb9251@sohu.com.
刊于《China-USA Business Review》2004年第9期P79-81
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