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This study compares the performance of Prospect Theory versus Stochastic Expected Utility Theory at fitting data on decision making under risk. Both theories incorporate well-known deviations from Expected Utility Maximization such as the Allais paradox or the fourfold pattern of risk attitudes....
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We present an empirical study of loss aversion in the Hong Kong horse betting market. We provide evidence of the presence of loss aversion in a context of complete absence of the favourite-longshot bias. This would suggest that, since loss aversion is a psychological bias, the favourite-longshot...
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can choose to either accept or reject a displayed lottery. From this data, we use information on 8800 individual lottery … gambles and specify four predictor-sets that include different combinations of input categories: lottery design, socioeconomic … three seconds of lottery-information processing. The results of our forecasting experiment show that choice-process data can …
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