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

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Abstract

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.