A more general non-expected utility model as an explanation of gambling outcomes for individuals and markets

Peel, D and Law, D (2009) A more general non-expected utility model as an explanation of gambling outcomes for individuals and markets. Economica, 76 (302). pp. 251-263. ISSN 0013-0427

[img]
Preview
PDF (A more general non-expected utility model as an explanation of gambling outcomes for individuals and markets)
10.pdf - Submitted Version

Download (227kB)

Abstract

One feature of experimental work is the heterogeneity in risk attitudes and probability distortion displayed by agents. We outline a more general non-expected utility model, which nests the models of Markowitz, and Kahneman and Tversky. The model can generate the standard favourite–longshot bias or a reverse favourite–longshot bias as a result of optimal behaviour. We also provide new empirical evidence on the relationship between Tote and bookmaker returns and confirm that the relationship is not as originally conjectured by Gabriel and Marsden. We outline how our new model can provide an explanation of the relationship that is observed.

Item Type:
Journal Article
Journal or Publication Title:
Economica
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/aacsb/disciplinebasedresearch
Subjects:
ID Code:
45564
Deposited By:
Deposited On:
11 Jul 2011 18:34
Refereed?:
Yes
Published?:
Published
Last Modified:
15 Aug 2020 02:02