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    Rights statement: This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 154, 2017 DOI: 10.1016/j.econlet.2017.02.005

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Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility. / Peel, David Alan.
In: Economics Letters, Vol. 154, 05.2017, p. 45-47.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Peel, DA 2017, 'Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility', Economics Letters, vol. 154, pp. 45-47. https://doi.org/10.1016/j.econlet.2017.02.005

APA

Peel, D. A. (2017). Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility. Economics Letters, 154, 45-47. https://doi.org/10.1016/j.econlet.2017.02.005

Vancouver

Peel DA. Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility. Economics Letters. 2017 May;154:45-47. Epub 2017 Feb 7. doi: 10.1016/j.econlet.2017.02.005

Author

Peel, David Alan. / Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility. In: Economics Letters. 2017 ; Vol. 154. pp. 45-47.

Bibtex

@article{5be2d3cb2e8849378c12eb4e63a94a25,
title = "Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility",
abstract = "In this letter we illustrate a previously unrecognised implication of Cumulative Prospect Theory and Rank Dependent Utility. We demonstrate that the representative individual in both models will often engage in wagering on more than one outcome in an event. For instance when playing European roulette the representative agents in CPT or RDU will always optimally wager on more than one outcome. This implication contrasts with expected utility models of wagering based on risk-seeking preferences due to the assumption of a convex segment of the utility function. ",
keywords = "Cumulative Prospect Theory , Hedge Wagering, Rank Dependent Utility,",
author = "Peel, {David Alan}",
note = "This is the author{\textquoteright}s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 154, 2017 DOI: 10.1016/j.econlet.2017.02.005",
year = "2017",
month = may,
doi = "10.1016/j.econlet.2017.02.005",
language = "English",
volume = "154",
pages = "45--47",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Wagering on more than one outcome in an event in Cumulative Prospect Theory and Rank Dependent Utility

AU - Peel, David Alan

N1 - This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 154, 2017 DOI: 10.1016/j.econlet.2017.02.005

PY - 2017/5

Y1 - 2017/5

N2 - In this letter we illustrate a previously unrecognised implication of Cumulative Prospect Theory and Rank Dependent Utility. We demonstrate that the representative individual in both models will often engage in wagering on more than one outcome in an event. For instance when playing European roulette the representative agents in CPT or RDU will always optimally wager on more than one outcome. This implication contrasts with expected utility models of wagering based on risk-seeking preferences due to the assumption of a convex segment of the utility function.

AB - In this letter we illustrate a previously unrecognised implication of Cumulative Prospect Theory and Rank Dependent Utility. We demonstrate that the representative individual in both models will often engage in wagering on more than one outcome in an event. For instance when playing European roulette the representative agents in CPT or RDU will always optimally wager on more than one outcome. This implication contrasts with expected utility models of wagering based on risk-seeking preferences due to the assumption of a convex segment of the utility function.

KW - Cumulative Prospect Theory

KW - Hedge Wagering

KW - Rank Dependent Utility,

U2 - 10.1016/j.econlet.2017.02.005

DO - 10.1016/j.econlet.2017.02.005

M3 - Journal article

VL - 154

SP - 45

EP - 47

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

ER -