On the positive expected utility of combination wagers

Buraimo, Babatunde and Peel, David and Simmons, Robert (2016) On the positive expected utility of combination wagers. Decision Analysis, 13 (3). pp. 209-212. ISSN 1545-8504

PDF (Revisions for Decision Analysis 2016-06-14)
Revisions_for_Decision_Analysis_2016_06_14.pdf - Accepted Version
Available under License Creative Commons Attribution-NonCommercial.

Download (300kB)


We demonstrate that a utility maximizing individual with an everywhere concave utility function may optimally wager on two or more outcomes in an event even though the expected returns to a unit stake are negative on all outcomes except one.

Item Type: Journal Article
Journal or Publication Title: Decision Analysis
Additional Information: Copyright © 2016, INFORMS
Uncontrolled Keywords: /dk/atira/pure/subjectarea/asjc/1800
Departments: Lancaster University Management School > Economics
ID Code: 80707
Deposited By: ep_importer_pure
Deposited On: 04 Aug 2016 12:36
Refereed?: Yes
Published?: Published
Last Modified: 17 Feb 2020 03:10
URI: https://eprints.lancs.ac.uk/id/eprint/80707

Actions (login required)

View Item View Item