By using an historical approach, this paper supports the idea that the popularity of lottery-linked financial assets does not corne from an abnormally high expected retum, but from their original framework that combines gambling and savings. We show that these kinds of assets are very famous and...

Lottery-linked deposit accounts (LLDAs) are financial assets that provide an interest rate determined by a lottery. These accounts that combine savings and lottery have become very popular in recent years and in a number of countries (Guillen and Tschoegel). However, their existence cannot be...

The Cumulative Prospect Theory, as it was specified by Tversky and Kahneman (1992) does not explain the St Petersburg Paradox. This study shows that the solutions proposed in the literature (Blavatskky, 2005; Rieger and Wang, 2006) to guarantee, under rank dependant models, finite subjective...

Lottery-linked deposit accounts (LLDAs) are financial assets that provide an interest rate determined by a lottery. These accounts that combine savings and lot- tery have become very popular in recent years and in a number of countries (Guillen and Tschoegel). However, their existence cannot be...

Ce papier réalise une étude comparative des coûts et rendements des actifs financiers combinant épargne et jeu, de l’Ancien régime à nos jours. Nous montrons que ces produits sont extrêmement populaires et qu’ils ont toujours permis de récolter des fonds en quantité importante tout...

Lottery-linked deposit accounts are financial assets that provide an interest rate determined by a lottery. The aim of this study is to determine the optimal design of these financial assets (under cumulative prospect theory (CPT) framework). We underline that the weighting functions usually...

This paper proposes an historical analysis of lottery linked financial assets. We show that these kind of assets are very famous and are able to raise a huge amount of money even when their expected return is relatively low. In some cases, they can be considered as a really cheap source of fund....

Lottery-linked deposit accounts (LLDAs) are financial assets that provide an interest rate determined by a lottery. These accounts that combine savings and lottery have become very popular in recent years and in a number of countries (Guillen and Tschoegel). However, their existence cannot be...

The Cumulative Prospect Theory, as it was specified by Tversky and Kahneman (1992) does not explain the St Petersburg Paradox. This study shows that the solutions proposed in the literature (Blavatskyy, 2005; Rieger and Wang, 2006) to guarantee, under rank dependent models, finite subjective...

The Behavioral Portfolio Theory (BPT) developed by Shefrin and Statman (2000) is often set against Markowitz's (1952) Mean Variance Theory (MVT). In this paper, we compare the asset allocations generated by BPT and MVT without restrictions. Using U.S. stock prices from the CRSP database for the...