Incentives matter

by on January 6, 2005 at 11:30 am in Economics | Permalink

It took Robert G. Swofford Jr. more than a month to come forward and claim his $60 million Lotto prize, but he had to take care of some unfinished business -- divorcing his wife...

Swofford, a postal worker from Seminole County, claimed his prize Tuesday in a $34.7 million lump sum payout, ending weeks of mystery about who won the November 24 drawing.

Swofford, 53, and his wife separated three years ago. But two weeks after the winning numbers were announced, Ann Swofford served him with divorce papers and claimed a share of the prize.

Just before Christmas, the Swoffords and their lawyers hammered out an agreement. His wife will get $5.25 million and $1 million will be set aside to support their 11-year-old son. In return, she agreed not to seek any more of Swofford’s winnings.

Swofford said he remembered reading about a divorce case where a lottery winner kept it a secret and was penalized in court.

Here is the full story.  And here is a very different discussion of how incentives can matter.

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