Optimal lottery (Q478108): Difference between revisions

Lotteries are considered that belong to the set of Pareto equilibria between a firm and a consumer with rank-dependent utility (RDU). It is shown that the continuity of the lotteries is necessary for their compatibility with RDU, and that under realistic assumptions the optimal prize structure follows a power law distribution. The theoretical results are discussed in the context of real lotteries.

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reviewed by

Antanas Žilinskas

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Mathematics Subject Classification ID

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lotteries

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rational decision theory

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firm behavior

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MaRDI profile type

MaRDI publication profile

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OpenAlex ID

W4236996411

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cites work

Parameter-Free Elicitation of Utility and Probability Weighting Functions

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A tractable method to measure utility and loss aversion under prospect theory

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Separating curvature and elevation: a parametric probability weighting function

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OPTIMAL INSURANCE DESIGN UNDER RANK‐DEPENDENT EXPECTED UTILITY

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Violations of the betweenness axiom and nonlinearity in probability

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Optimal risk-sharing rules and equilibria with Choquet-expected-utility.

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Two-persons efficient risk-sharing and equilibria for concave law-invariant utilities

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Parametric weighting functions

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On the intuition of rank-dependent utility

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Is probability weighting sensitive to the magnitude of consequences? An experimental investigation on losses

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Measuring the utility of losses by means of the tradeoff method

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Gamblers favor skewness, not risk: Further evidence from United States' lottery games

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Statistical Size Distributions in Economics and Actuarial Sciences

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Curvature of the Probability Weighting Function

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Sitelinks

Mathematics(1 entry)

mardi Publication:478108

@@ Property / review text @@
+Lotteries are considered that belong to the set of Pareto equilibria between a firm and a consumer with rank-dependent utility (RDU). It is shown that the continuity of the lotteries is necessary for their compatibility with RDU, and that under realistic assumptions the optimal prize structure follows a power law distribution. The theoretical results are discussed in the context of real lotteries.
+Normal rank
@@ Property / reviewed by @@
+Antanas Žilinskas
@@ Property / reviewed by: Antanas Žilinskas / rank @@
+Normal rank
@@ Property / Mathematics Subject Classification ID @@
+B16
@@ Property / Mathematics Subject Classification ID: 91B16 / rank @@
+Normal rank
@@ Property / Mathematics Subject Classification ID @@
+B06
@@ Property / Mathematics Subject Classification ID: 91B06 / rank @@
+Normal rank
@@ Property / zbMATH DE Number @@
+6376373
@@ Property / zbMATH DE Number: 6376373 / rank @@
+Normal rank
@@ Property / zbMATH Keywords @@
+lotteries
@@ Property / zbMATH Keywords: lotteries / rank @@
+Normal rank
@@ Property / zbMATH Keywords @@
+rational decision theory
@@ Property / zbMATH Keywords: rational decision theory / rank @@
+Normal rank
@@ Property / zbMATH Keywords @@
+firm behavior
@@ Property / zbMATH Keywords: firm behavior / rank @@
+Normal rank
@@ Property / MaRDI profile type @@
+MaRDI publication profile
@@ Property / MaRDI profile type: MaRDI publication profile / rank @@
+Normal rank
@@ Property / OpenAlex ID @@
+W4236996411
@@ Property / OpenAlex ID: W4236996411 / rank @@
+Normal rank
@@ Property / cites work @@
+Parameter-Free Elicitation of Utility and Probability Weighting Functions
+Normal rank
@@ Property / cites work @@
+A tractable method to measure utility and loss aversion under prospect theory
+Normal rank
@@ Property / cites work @@
+Separating curvature and elevation: a parametric probability weighting function
+Normal rank
@@ Property / cites work @@
+OPTIMAL INSURANCE DESIGN UNDER RANK‐DEPENDENT EXPECTED UTILITY
+Normal rank
@@ Property / cites work @@
+Violations of the betweenness axiom and nonlinearity in probability
+Normal rank
@@ Property / cites work @@
+Optimal risk-sharing rules and equilibria with Choquet-expected-utility.
+Normal rank
@@ Property / cites work @@
+Two-persons efficient risk-sharing and equilibria for concave law-invariant utilities
+Normal rank
@@ Property / cites work @@
+Parametric weighting functions
@@ Property / cites work: Parametric weighting functions / rank @@
+Normal rank
@@ Property / cites work @@
+On the intuition of rank-dependent utility
@@ Property / cites work: On the intuition of rank-dependent utility / rank @@
+Normal rank
@@ Property / cites work @@
+Is probability weighting sensitive to the magnitude of consequences? An experimental investigation on losses
+Normal rank
@@ Property / cites work @@
+Measuring the utility of losses by means of the tradeoff method
+Normal rank
@@ Property / cites work @@
+Gamblers favor skewness, not risk: Further evidence from United States' lottery games
+Normal rank
@@ Property / cites work @@
+Statistical Size Distributions in Economics and Actuarial Sciences
+Normal rank
@@ Property / cites work @@
+Curvature of the Probability Weighting Function
@@ Property / cites work: Curvature of the Probability Weighting Function / rank @@
+Normal rank
@@ links / mardi / name / links / mardi / name @@
+Publication:478108