Estimating risk preferences of bettors with different bet sizes

DOI10.1016/J.EJOR.2015.09.053zbMath1346.91107OpenAlexW1820790665MaRDI QIDQ321112

Christoph Schumacher, Eberhard Feess, Helge Müller

Publication date: 7 October 2016

Published in: European Journal of Operational Research (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.ejor.2015.09.053

zbMATH Keywords

applied probabilitybetting marketsestimation of risk preferencesfavorite-longshot biasoverweighting of small probabilities

Mathematics Subject Classification ID

Decision theory (91B06) Individual preferences (91B08)

Related Items (5)

It takes all sorts: a heterogeneous agent explanation for prediction market mispricing ⋮ Turning the heat on financial decisions: examining the role temperature plays in the incidence of bias in a time-limited financial market ⋮ Estimating the term structure of commodity market preferences ⋮ A conditional fuzzy inference approach in forecasting ⋮ Betting market equilibrium with heterogeneous beliefs: a prospect theory-based model

Cites Work

• Misunderstanding of the binomial distribution, market inefficiency, and learning behavior: evidence from an exotic sports betting market
• Cumulative prospect theory's functional menagerie
• Advances in prospect theory: cumulative representation of uncertainty
• Violations of the betweenness axiom and nonlinearity in probability
• Risk attitudes of children and adults: Choices over small and large probability gains and losses
• The representative bettor, bet size, and prospect theory
• The utility of gambling
• Gender, financial risk, and probability weights
• The Probability Weighting Function
• Does Belief Heterogeneity Explain Asset Prices: The Case of the Longshot Bias
• From Aggregate Betting Data to Individual Risk Preferences

This page was built for publication: Estimating risk preferences of bettors with different bet sizes