Agent-based modeling of lottery markets with the expected-utility paradigm

This paper proposes an agent-based computational model of a lottery market based on an expected-utility paradigm, in which agents´ decisions regarding lottery participation are based on their own subjective beliefs, and those beliefs are evolving over time with genetic algorithms. The simulation results are then compared with another agent-based lottery market with different agent engineering. It is found that almost all emergent properties, such as the Laffer curve, the halo effect (lottomania), conscious-selection behavior, and the interdependent preference (regretting effect) are qualitatively robust with these two different designs of agents