The model of rational decision-making in most of economics and statistics is expected utility theory (EU) axiomatised by von Neumann and Morgenstern, Savage and others. This is less the case, however, in financial economics and mathematical finance, where investment decisions are commonly based...

A book is made for a horse race, and punters place their bets. The problem considered here is how the bookmaker should construct his book. Before this can be solved, it has to be determined how the punters will react to any proposed book. Much of the detailed discussion is confined to a race...

Morris proposed a set of axioms for combining experts' probability assessments. It is here argued that one of these axioms is unsatisfactory. Its use leads to a conflict between the discrete and continuous cases which disappears in a coherent approach.

Analyses are made of two wine tastings, one of red and one of white wines, to compare French and American styles. It is concluded that there are differences between the wines and, in the case of the reds, national differences. It is shown that even skilled tasters can often be out by as much as...