This paper examines how consumers perceive fairness and enjoy the outcome of an emerging risky discount: the retail industry’s gambling or lottery type “scratch and save” (SAS) price promotions, in which the actual discount is determined by chance at the checkout.

Batsell and Polking (1985) developed one of the important choice models that address the problem of independence from irrelevant alternatives. In this note, we propose an estimation method that directly estimates Batsell and Polking's model. Compared to the indirect estimation method suggested...