Skewness of return has been suggested as a reason why agents might choose to gamble, ceteris paribus, in cumulative prospect theory (CPT). We investigate the relationship between moments of return in two models where agents choices over uncertain outcomes are determined as in CPT. We illustrate...

The realisation of a practical generally versatile variable product assembly machine is still far from reality. However, in the same way that a generation 1 Industrial Robot can achieve high levels of versatility within certain restricted activities e. g. paint spraying ‐ spot welding etc.,...

This paper surveys the work on robot forging which has been taking place at the University of Nottingham over the last two years, initially using a Versatran D301 as a base for a feasibility study. Also it seeks to describe and put into perspective the current work using an A.S.E.A. robot and...

We show that in principal only a small degree of probability distortion is necessary for agents to exhibit the Allais paradox. We also show that the choices observed in the Allais experiments employing small real payoffs cannot be explained by Cumulative Prospect Theory without the assumption of...

Standard parametric specifications of Cumulative Prospect theory (CPT) can explain why agents bet on longshots at actuarially unfair odds. However, the standard specification of CPT cannot explain why people might bet on more favoured outcomes, where by construction the greatest volume of money...

The answer to this question, based on a study of 1000 greyhound races, is 'no'. Although the efficient markets hypothesis asserts that speculative market prices optimally encapsulate all relevant information, it is found that 'Shin probabilities' (based on Shin, 1993), in which a dog's winning...

Explanation of the Allais paradox and the preference of many for multiple prize lottery tickets provide a rationale for why a model of agent's choice under uncertainty should embody the assumption that they distort probabilities. However the degree of probability distortion required to explain...

Bookmakers practise a type of product bundling. To bet a horse for a place a punter has to bet an equal amount for a win. The returns to the place component of the bet are determined by a rule of thumb. This paper examines whether the product bundling negates a betting strategy that endeavours...